Donatos Pizza Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$30,000
Investment required
$457,000 - $990,000
Royalty fee
4.00%

Donatos Pizza: Championing Quality and Community in Every Slice

Founded by Jim Grote in 1963, Donatos Pizza began with a mission to create exceptional pizzas, hire outstanding people, and make a positive impact on the community. Starting as a single pizzeria near The Ohio State University campus in Columbus, Ohio, Donatos embarked on franchising in 1991, initiating its growth beyond the original location.

Donatos prides itself on using high-quality ingredients and offering a menu that prioritizes consistency, quality, convenience, and freshness. The brand stands out with its "Best on the Block" marketing strategy and a Fast Casual restaurant model, featuring 5 Market Access Strategies. This approach helps their franchised and company-owned restaurants achieve superior results within the pizza industry.

The franchise journey of Donatos is notable; after its inception, McDonald's acquired the company in 1999. However, in 2003, the founding family bought it back, leading to significant performance improvements and preparations for national expansion.

Based in Columbus, Ohio, Donatos is celebrated for its Edge to Edge® pizzas, known for their abundant toppings and premium ingredients. This dedication to quality products, paired with a strong community-oriented philosophy, distinguishes Donatos in the competitive pizza market.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Franchise Fee $30,000
Security Deposit Under Lease $2,000 to $11,000
One Month’s Lease Rent and Real Estate Expenses $2,000 to $11,000
Leasehold Improvements/Construction $35,500 to $454,000
Furniture, Fixtures, Equipment $297,244 to $346,154
Computer System $18,000 to $23,000
TRIO Software License Fee $4,500
Liquor License $0 to $10,000
Opening Inventory and Supplies $15,000 to $20,000
Grand Opening Marketing Program and Initial Marketing Expenses $25,000 to $30,000
Training Expenses $1,000 to $15,000
Miscellaneous Opening Costs $2,000 to $5,000
Additional Funds – 3 months $25,000 to $30,000
Total Estimated Initial Investment $457,244 to $989,654

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Number of units

2023
Franchised units

108

114

118

Company-owned units

54

54

52

Total units

162

168

170

Franchise Disclosure Document

Training 

Donatos Pizza offers an extensive training program central to their franchise support, designed to ensure franchisees are fully prepared to manage their store. This program accommodates up to three individuals, including the Designated Principal and potentially the district or general manager.

The training curriculum covers a wide range of topics, including operations, guest service, marketing, and IT, providing a thorough foundation for running a successful franchise.

The length of the training is flexible, adapting to the class size and the pace at which the material is covered. Most hands-on training and classroom sessions are conducted at approved locations, often at Donatos Pizza's home office.

Donatos Pizza emphasizes continuous growth and development by offering advanced and refresher training programs, keeping franchisees and their teams up-to-date with the latest best practices.

While the initial training programs are provided at no additional cost to franchisee owners, it is important to note that expenses related to transportation, lodging, and meals are the responsibility of the franchisee.

Territory Protection

Each Donatos Pizza restaurant is assigned a specific location, known as the "Site," either at the time of the Franchise Agreement execution or within 180 days. Any relocation of the restaurant from this Site requires prior written approval from the franchisor.

Generally, the franchisor does not permit restaurant relocation during the Franchise Agreement term. However, exceptions may be made in extraordinary circumstances, such as catastrophic events or the franchisee losing occupancy rights to the approved site through no fault of their own.

For franchisees entering into a Development Rights Agreement, the designated Territory is defined based on several factors. The Territory size is primarily influenced by the number of Donatos Pizza restaurants the franchisee commits to developing, the market characteristics, and demographic factors. Typically, the Territory encompasses an entire city or county, depending on whether the area is urban or rural.

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