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Domino’s Pizza is a household name across the UK. Becoming a Domino’s franchisee enables you to run a pizza delivery business under a well-established brand. Opening a Domino’s franchise can be a rewarding business venture. However, it requires a clear understanding of various legal considerations, from franchise agreement terms to compliance with health and safety regulations. This article will explain the vital legal considerations involved in opening a Domino’s franchise and becoming a franchisee within the Domino’s brand.
1. The Franchise Agreement
To become a franchisee, you will need to sign a franchise agreement. Domino’s will provide you with this agreement when you enquire about becoming a franchisee. This contract will set out the terms of the relationship between you, the franchisor, and the Domino’s brand.
The following table sets out the critical points of this agreement.
| Key Points | Explanation |
| Rights and obligations | The agreement will detail what you can expect from Domino’s and what they expect of you. |
| Costs and fees | The franchisor will outline all the initial costs you must pay to invest in the franchise opportunity and open a Domino’s store. It will also detail all the ongoing fees you will need to pay for the duration of the agreement, such as royalties and marketing contributions. |
| Duration and renewal | The agreement will specify the length of the franchise term and the conditions for renewing it, allowing you to continue your operations beyond this term. |
| Territory | If the franchisor grants you exclusive territory rights, they should clearly define your territory within this agreement. |
| Training and support | The document will specify the training and ongoing support you will receive from Domino’s. |
It is also crucial that you understand termination clauses. The franchisor may terminate your franchise agreement, ending your business relationship under certain circumstances, including breach of contract and insolvency. You should carefully read the agreement and understand the conditions under which you can terminate it. Understand your responsibilities once the franchise agreement ends, such as returning proprietary materials and non-compete clauses.
You should read through the whole agreement carefully. Once you sign it, you agree to all its terms and become bound by it.
2. Financial Obligations
Understanding and managing your financial obligations is critical to the success of your franchise. These include the following:
- paying the initial fees to invest in the franchise and gain the rights to use the franchisor’s branding;
- ensuring that you can pay the ongoing royalties and other regular fees;
- factoring in operational costs such as rent, utilities and payroll; and
- maintaining accurate financial records and complying with Domino’s reporting requirements.
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3. Health and Safety Compliance
Running a Domino’s franchise requires you to adhere to UK laws and regulations, including health and safety laws. You must ensure that:
- your premises are safe for your customers and employees; and
- your business complies with food hygiene standards, including proper food storage, preparation and handling.
If you do not comply with the relevant health and safety regulations, you risk fines or even the closure of your business. You must remain informed and adhere to all applicable laws to ensure your Domino’s pizza business operates smoothly.
4. Intellectual Property Use
Domino’s is an established brand that has protected its branding by registering trade marks. Trade marks protect critical aspects of the business’s identity, such as logos and its name. The franchise agreement will give you the right to use Domino’s branding. It will also outline restrictions on the ways you can use it. You must ensure that you comply with these and use Domino’s branding only in the ways your franchise agreement permits.
5. Employment Law
As a franchisee, you must hire and manage staff in compliance with UK employment laws. For example, you must:
- ensure all team members have clear contracts outlining their terms of employment;
- pay at least the minimum wage and comply with wage regulations;
- adhere to rules regarding working hours, including breaks and overtime; and
- provide a safe working environment and comply with health and safety regulations.
Discover the key legal and commercial issues to consider when buying a franchise.
Key Takeaways
If you want to become a Domino’s Pizza franchisee, there are several vital legal considerations involved, including the following:
- carefully reading the franchise agreement before signing;
- understanding your financial obligations;
- following health and safety regulations;
- complying with your obligations relating to Domino’s intellectual property rights; and
- adhering to employment laws.
If you would like legal advice about opening a Domino’s store and becoming a franchisee, our experienced franchise lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.
Frequently Asked Questions
Yes, Domino’s operates as a franchise. This business format means that independent operators can invest in the brand and operate pizza delivery businesses under the Domino’s brand.
Key terms of the franchise agreement include both parties’ rights and obligations, the franchise fee structure, renewal conditions and termination terms.
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