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Domino’s Franchise Loan

Do you need a Domino’s franchise loan to start your own business venture?

Domino’s is regarded as Australia’s number 1 pizza maker with over 570 stores across the country but your success will depend on your ability to manage your franchise.

Despite the brand name and your opportunity to leverage the resources of Domino’s to grow your venture, getting approved for a Domino’s franchise loan still requires you to present a strong business case to the banks.

How does a Domino’s franchise loan work?

How much can I borrow?

Depending on the strength of your case, you’re eligible for the following with some of our commercial lenders:

  • New or existing store: Borrow up to 50-70% of the total business costs or 100% with an existing residential property as security.
  • Loan term: Typically 10 years or the length of the franchise agreement.
  • Loan term with property as security: 25 to 30 years (standard loan term).
  • A business plan and profit forecasting will be required for approval.
  • Low doc options not available.
  • Commercial rate discounts available by mortgage broker negotiation.

Not sure if you qualify for finance?

We can help you put together an application that shows your strengths as a business owner.

Please call us on 1300 889 743 or complete our free assessment form to find out if you’re eligible for a Domino’s franchise loan.

Getting approved

What if I want to buy an existing Domino’s franchise?

Because some of our lenders will allow you to borrow up to 70% of the business value for such a recognisable business, the franchise will generally be required to be generating 3x earnings before interest, tax, depreciation and amortization (EBITDA).

This will be via business bank statements and profit and loss statements for the current franchisees.

Whether you’re buying an existing or new franchise, the bank will also want to see 2 years personal financials and/or business financials if you were previously running your own pizza store or restaurant.

Do I need experience?

Domino’s doesn’t generally require past experience but the bank will be concerned if you previously worked as a receptionist and are now wanting to run a franchise, for example.

Some background (typically 2 to 3 years experience) is usually required but above all you’ll need to provide a business action plan detailing how you plan to stay profitable in the years ahead.

This includes cashflow and revenue forecasts, which a qualified accountant can help you draft up.

Apart from that, the bank generally wants to know that you’ve done your due diligence on your personal finance and your skills in running a viable Domino’s franchise.

By presenting a strong business case you put yourself in a better position to get approved for a Domino’s franchise loan!

Can I buy multiple sites?

Not generally.

Lending against the value of a franchise is the same as lending against any other type of business: it’s generally seen as a high risk.

Funding to buy multiple Domino’s franchises is seen as an even riskier strategy and will likely be declined by the bank if you don’t have security (either cash or a residential property) to put towards the finance and working capital to get the franchises off the ground.

Another thing to keep in mind is that banks have an exposure limit to the franchises they will lend money to at any given time.

A lender’s appetite for Domino’s franchises change on regular basis so it’s best you speak to a mortgage broker about your franchise plan.

Call 1300 889 743 or complete our free assessment form today.

What should I know about buying a Domino’s franchise?

Domino’s is widely regarded as one of the best Quick Service Restaurants (QSR) in world and has a network of consultants that you can speak to about improving sales.

They’re also a technology-driven business and have unique systems in place to improve business management as well as providing a fast and qualify customer experience.

What's my potential profit?

It’s quite difficult and a little dangerous from a business point of view to rely on past sales of other Domino’s franchises in order to determine how much revenue you stand to make.

Comparing stores in the same location and of a similar size is a good guide but it doesn’t really take into account your business skills in driving a store to success.

You can’t solely rely on the Domino’s brand and their support so you have to be active in the franchise like any other type of business.

How much do they cost?

Although it’s generally seen as a low cost franchise and has some fixed fees, you should consider the capital requirement is about $450,000 to $600,000.

This includes:

  • Your deposit bond.
  • Fit out.
  • Equipment.

What’s not included in this price:

  • Initial franchise fee ($60,000 plus GST).
  • Ongoing franchise fee (7% of gross sales per week).
  • Advertising fee (6% of overall sales).
  • Rent ($40,000 to $60,000 plus outgoings per annum).

What other requirements are there?

Apart from the initial and ongoing costs, Domino’s has the following requirements, bearing in mind these requirements are only correct at the time of writing this page:

  • Non-residents not accepted but if you had a business partner who was a permanent resident or Australian citizen and would be the majority shareholder, this would be acceptable. Check out the commercial property loan page if you’re in this situation because you may be eligible for other types of properties.
  • Must relinquish all other business interests to be able to proceed with the application so you’re 100% invested in running the store.

There are other restrictions and requirements for buying a Domino’s franchise so it’s essential you request a Uniform Franchise Offering Circular (UFOC) from

The benefits of a Domino's franchise

  • Comprehensive training which includes an initial 6-week course followed by a test.
  • Marketing and advertising support.
  • You don’t need to lock into a franchise until other models which require a 5-10 year commitment. This is because Domino’s offer franchises under a head lease arrangement.
  • No experience required but you should expect to work long hours at least for the first 2 years of operating.

What is a head lease?

Unlike starting your own independent business or buying one, you’re not actually buying the lease when it comes to a Domino’s franchise loan.

The leasehold itself is held by Domino’s in a head lease model.

So essentially the company leases the premises from the landlord and then sub-leases to you as the franchisee.

Domino’s acts as the “middle man” between you as the landlord and the tripartite agreement is separate from your franchise agreement.

Banks like them because in the event that you default on the Domino’s franchise loan, you’re not primarily liable for the rent and outgoings of the leasehold.

This means you and the lender are taking much less risk and that’s why some lenders are willing to offer up to 70% of the business value.

The benefit to you is that if you’re buying an existing store, it’s likely that it’s already been there for quite a few years already which means it’ll already have a presence in that location.

That’s a great advantage to have when you start to run your own Domino’s pizza store.

What do I do next?

Do you need a Domino's franchise loan?

Call us on 1300 889 743 or complete our free assessment form.

We have the credit knowledge and relationships to match you up with a lender that will approve your Domino’s franchise loan the first time around.

Our mortgage brokers can also get much faster turn around than going to a bank directly.

Speak to us about a Domino’s franchise loan today!