Domino's Pizza vs Pizza Hut Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Domino's Pizza vs Pizza Hut including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
Investment |
$101,450 - $582,500 | $40,600 - $2,063,500 |
Franchise Fee |
$25,000 | $25,000 |
Royalty Fee |
5.5% | 6% |
Advertising Fee |
- | 4.25% |
Year Founded |
1960 | 1957 |
Year Franchised |
1967 | 1959 |
Term Of Agreement |
10 years | - |
Term Of Agreement |
10 years | - |
Renewal Fee |
- | - |
Business Experience Requirements |
Experience |
Industry experience Successful experience in food service/retail management; entrepreneurial/equivalent experience | - |
Financing Options |
|
In-House/3rd Party | In-House/3rd Party |
Franchise Fees |
No/Yes | No/No |
Start-up Costs |
No/Yes | No/No |
Equipment |
No/Yes | No/No |
Inventory |
No/Yes | No/No |
Receivables |
No/Yes | No/No |
Payroll |
No/Yes | No/No |
Training & Support |
Training |
- | On-The-Job Training: 8-12 weeks
|
Support |
Newsletter, Meetings, Internet, Security/safety procedures, Field operations/evaluations | Purchasing Co-ops
Newsletter
Meetings/Conventions
Toll-Free Line
Grand Opening
Online Support
Security/Safety Procedures
Field Operations
Proprietary Software
Franchisee Intranet Platform |
Marketing |
Co-op advertising, Ad slicks, National media | Co-op Advertising
Ad Templates
National Media
Regional Advertising
Loyalty program/app |
Operations |
Number of employees needed to run franchised unit: 15
- 20
Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators) | - |
Expansion Plans |
US Expansion |
- | Yes |
Canada Expansion |
No | No |
International Expansion |
Yes | Yes |
Company Overviews
About Domino's Pizza
In 1960, brothers Tom and James Monaghan borrowed $500 to purchase DomiNick's, a pizza store in Ypsilanti, Michigan. The next year, James traded his half of the business to Tom for a Volkswagen Beetle. In 1965, Tom Monaghan renamed the company Domino's Pizza LLC. The first Domino's Pizza franchise store opened in Ypsilanti, Michigan, in 1967. Tom Monaghan retired in 1998, selling 93 percent of the company to Bain Capital. In addition to regular, pan and thin-crust pizza, Domino's products include bread sticks and buffalo wings. Domino's Pizza operates more than 6,000 stores in the United States, Canada, Europe and Africa.
The total investment ranges from $144,450 to $582,500 for a Domino's Pizza Traditional Store and $101,450 to $573,500 for a Domino's Pizza
Non-Traditional Store. The franchisor estimates the payments made to
them and their affiliates together with Initial Fee payments will range
from $84,750 to $167,500 for a Domino's Pizza Traditional Store and
$65,750 to $158,500 for a Domino's Pizza Non-Traditional Store.
#16 in Canada's Top franchises
About Pizza Hut
While college students in Wichita, Kansas, Frank and Dan Carney were approached by a family friend with the idea of opening a pizza parlor. Inspired, the brothers borrowed $600 from their mother, purchased secondhand equipment, and rented a small building on a busy intersection in their hometown. With that, the first Pizza Hut opened its doors in 1958. More than 40 years later, Pizza Hut has locations throughout the world serving its specialty pizzas.
Pizza Hut is owned by Yum! Brands, parent company of Taco Bell, KFC and formerly Long John Silver's and A&W Restaurants.
The total investment necessary to begin operation ranges from $40,600
to $168,230 for a Pizza Hut Mini Kitchen; $109,700 to $179,230 for a
Pizza Hut Kiosk; $99,200 to $199,230 for a Pizza Hut Retail Counter;
$109,700 to $420,900 for a Pizza Hut Retail Counter with Seating;
$241,550 to $472,000 for a Pizza Hut Full Kitchen with Seating (in each
case, not including real property or signage), including $6,000 to
$17,000 that must be paid to the franchisor or their affiliates.
#28 in Canada's Top franchises.
#78 on Franchise Rankings.com
#10 in Franchise 500 for 2020.
#59 in Franchise 500 for 2021.