Domino's Master Franchise Model

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Case Details:			Price:
Case Code	:	OPER080	For delivery in electronic format: Rs. 300; For delivery through courier (within India): Rs. 300 +Shipping & Handling Charges extra Themes International Operations
Case Length	:	19 Pages
Period	:	1983 - 2009
Organization	:	Domino's Pizza Inc.
Pub Date	:	2009
Teaching Note	:	Not Available
Countries	:	US
Industry	:	Food and Beverage

Abstract:

The case discusses the master franchise model of the US-based Domino's Pizza Inc (Domino's). Domino's, which was started in the 1960s, expanded in international markets mainly through its master franchise model. Under this model, the franchisees were provided with exclusive rights to operate stores, or to sub-franchise them in a particular area. Domino's recruited franchisees with business experience and knowledge of local markets as master franchisees, and was able to mitigate the risks associated with entering and operating in international markets. Under master franchising, in markets where there was high potential for development, Domino's transferred market exclusivity to an individual/company, who had a significant presence and knowledge about the local markets.

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These individuals/companies in turn invested in establishing the master franchise, whose responsibilities include building stores, sub-franchising, operating distribution system, etc. The case discusses in detail the store operations of Domino's and the benefits of its master franchise system.

Issues:

» Understand the master franchise model of Domino's and its advantages.

» Examine some of the unique features of the master franchise model of Domino's.

» Analyze the store operations of Domino's.

» Examine the training/support provided by Domino's to the franchisees.

» Understand how the master franchise model helped Domino's in facing the adverse impact of global economic slowdown successfully.

Keywords:

Domino's Pizza Inc., Master Franchise Model, International Markets, Entrepreneurial Spirit, Domino's Pizza International Inc., Master Franchise Agreement, Supply Chain Centers, Uniform Franchise Offering Circular, Pizza Delivery, Franchise Network, Royalty Fee, Franchisee Consultant, Franchise Development Program, Domino's Pizza Group, Franchisee Training, Franchisee Rating Program, Distribution Rights, Recession in US, Global Economic Slowdown, Franchise Set-up Costs, Financial Performance, Store Growth Activity, Franchise Termination

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Domino's Master Franchise Model

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