Dominos Pizza Financial Accounts

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					Term Paper-Summer 2003



      Prepared for:

      Dr. P. Chan

      BUAD 590




          by:

  Geraldo Obach Lütje
      July 09, 2003
                                                     Table of Contents


Table of Contents .......................................................................................................        1
Domino’s Pizza ..........................................................................................................        2
      A Short Overview ..........................................................................................               2
      Vision and Guiding Principles .......................................................................                     2
      Financial Performance ...................................................................................                 3
      Earning Claims...............................................................................................             3
The Food Industry ......................................................................................................         4
General Franchising Facts of Domino’s Pizza...........................................................                           5
      The Domino’s Pizza Store Concepts .............................................................                           5
      Training Of the Prospective Franchisee .........................................................                          6
      Further Training .............................................................................................            7
      Domino’s Pizza Fee Structure .......................................................................                      7
      Obligations of Franchiser and Franchisee......................................................                            9
      Financing........................................................................................................        10
International Franchising ...........................................................................................           10
Other International Challenges and Strategies ...........................................................                       11
      Domino’s In Malaysia....................................................................................                 11
      Domino’s and the Concerned U.K. Customers ..............................................                                 11
      Tariffs in Morocco .........................................................................................             11
      Infrastructure in Poland..................................................................................               12
Conclusion .................................................................................................................    12
References ..................................................................................................................   13


Appendix 1: Condensed Consolidated Balance Sheets .............................................                                 14
Appendix 2: Figure 1; Figure 2; Figure 3 ..................................................................                     15
Appendix 3: Fee Structure .........................................................................................             16
Appendix 4: 2001 Year Ending Market Presence......................................................                              17
Appendix 5: Uniform Franchising Offering Circular 2001 .......................................                                  18
Domino’s Pizza


A Short Overview 1,2
        Domino’s Pizza started with one store in 1960, when Tom and James Monaghan
purchased “DomiNick’s”, a pizza store in Ypsilanty, Michigan. In 1965, Tom Monaghan,
as the sole store owner, incorporates and renames the business into Domino’s Pizza Inc.
Following the incorporation, the first franchised store opens in 1967 in the founding
town, and the first outside Michigan store is opened in 1968 in Burlington, Vermont.
Domino’s goes international with its first store outside the USA in Winnipeg, Canada in
1983, in the same year a store in Queensland, Australia is opened. Two years later
Domino’s expands to the European continent (United Kingdom) and Asia (Japan). The
first store on the South American continent is opened in 1988 in Colombia. Domino’s
Pizza International opens in 1995 the 1,000th store and the first one on the African
continent in Egypt.
        In 1998 Tom Monaghan retires and sells 93% of Domino’s Pizza Inc. to Bain
Capital Inc. a private equity company. Following the sale and the retirement from the
active management of Tom Monaghan, David Brandon becomes chairman and Chief
Executive Office or Domino’s Pizza in 1999. One year later Domino’s is reorganized to a
limited liability company, based on Michigan law. In the same year the 2000th store
outside the USA is opened and Domino’s celebrates its 40th birthday.
        Nowadays Domino’s Pizza offers more than just pizzas. The customer can choose
also from side or full dishes like a variety of bread- and cheese-sticks, chicken wings or
several soft drinks.


Vision and Guiding Principles 3
        David Brandon created the Vision statement and the guiding principles, when he
took over as CEO of Domino’s Pizza. While the purpose of the vision statement is to
clearly state of company’s overall goal, the guiding principles help to reach this goal.
Domino’s Pizza Vision “Exceptional people on a mission to be the best pizza delivery
company in the world” is split up into several parts, explaining it a little bit clearer.
Domino’s focuses on its people, it recognizes that the employees are the most important
asset and resource, to achieve the determined and passionate goal. Domino’s sees pizza
delivery as their niche on which they will continue to concentrate and in which they want
to be the best company in. Domino’s sees itself not only in the USA but also everywhere
in the world.
        Domino’s Pizza has five guiding principles that should explain how it wants to
achieve or support the goals stated in the vision.
   Integrity – Being the first principle, it states that the following ones are absolute and
     incorruptible
   People come first – A company cannot survive without exceptional people, and will
     be rewarded by loyal team members
   Take great care of customers – Happy customers are the basis for survival in a
     highly competitive market
   “Perfect 10” Pizzas – Product quality is crucial to success
   Smart hustle and positive energy – Getting the product as quick as possible to the
     customer while maintaining safety for the employees, and positive energy is a self-
     perpetuating power


                          Financial Performance in 2001
        Domino’s Pizza financial facts for 2001 looked good (Appendix 1). The net
income rose by 64.9% and the EBITDA increased by 16.7% compared to the year before.
Domestic same store sales increased by 2.6% and international same store sales increased
by 4.1% (on a constant dollar basis), total system-wide sales experienced an increase of
4.7%.


                                   Earning Claims 4
        Earning claims or projections are any information that can clarify questions of the
prospective franchisee, concerning actual or projected sales, income or profits of
franchised units. In the case of Domino’s Pizza, a prospective franchisee, has no chance
to find out information about expected returns, because Domino’s does not make and/or
release any Earnings Claims, furthermore no one involved with the company is
authorized to do so.
The Food Industry 5


       The sales revenues, created by about 870,000 national locations, in the Fast Food
Industry were about $426 billion in 2001. The research company Technomic Inc. found
out, that in the year 2001 about 100 companies controlled 50.7% of the highly segmented
Food industry, while the next 100 companies accounted for only 5.3%. This result shows
that the food industry is a big business with a lot of highly competitive companies.
       About a 100 companies in the Pizza market fight for market shares. In 2001 the
Pizza Industry holds the fourth place of the entire Restaurant Market shares with 8.2%.
Four companies control 90% of the pizza market; the biggest player in the Pizza market
of 2001 was Pizza Hut with sales revenue of $5 billion. Dominos Pizza ranked with $2.8
second, while Papa John’s International hold the third place with $1.8 billion in sales.
Little Caesars was the fourth biggest company with $1.1 billion in sales.
       The Food market can be divided into three different areas using Michael E.
Porters “Five Generic Competitive Strategies” Model. Applying the model onto the entire
Fast Food industry we should use the different market share areas with focusing on the 4
major players: Sandwich, Dinner House, Contract and Pizza. Looking at Appendix 2,
Figure 1 we can assume that only Dinner Houses or Family Restaurants can be
considered Best-Cost Strategy Providers, because they are the only market
representatives that actually overlap several areas in the model.
       Concentrating the same model on the 10 biggest companies, based on their nation
wide sales in 2001, we can see from Appendix 2, Figure 2 that only one of the Dining-In
restaurants is a major player and due to the variety of it, Applebee’s Inc can be
considered the only Best-Cost Provider, while all the other companies focus mainly on
different market segments. Furthermore we can see now how highly concentrated the big
competition is in the sandwich market, while the big competitors in the other market
segments are not free of competition but at least of very close national competition
(Pizza, Mexican, Chicken).
       Using then Porters model solely on the Pizza market it is obvious why Pizza Hut
is the biggest player in this market segment, compared to the other four big companies.
Pizza Hut is the only company that comes closes to the position as Best-Cost Provider,
offering slightly broader services to the customers than the other companies (Appendix 2,
figure 3).


General Franchising Facts of Domino’s Pizza 6


        The first Domino’s Pizza franchise store was opened in Ypsilanti, Michigan in
1967 and 1983 the first international franchise in Winnipeg, Canada. Domino’s Pizza
states on the homepage, that franchising is not a business for everyone. Most of the
franchisees were former store employees who could gain insights into the Pizza market in
general and Domino’s business in particular. Being a franchisee is a hard job that requires
a lot of dedication during the initial 10 years, especially when knowing and following the
vision of Domino’s Pizza; this is the reason why Domino’s describes the three ideal traits
for a franchisee as: focused vision, hard working and having at least one year of
managing store experience with Domino’s Pizza.
        In 2001 Domino’s Pizza had 4,744 Domino’s Pizza Stores (4,225 franchised), 65
franchised Domino’s Pizza Pizzazz and 87 Domino’s C (all franchised or licensed) stores
nation wide.


The Domino’s Pizza Store Concepts
   Domino’s Pizza Stores (Franchising)
             o Traditional Domino’s Pizza stores
             o Located at retail outlets generally in shopping centers, strip malls, and
                similar locations, that provide parking of store owned vehicles as well as
                customer vehicles
             o Sell products through carry-out and delivery
   Domino’s Pizza Pizzazz Stores (Franchising)
             o Non-traditional stores
             o Located at office buildings, shopping malls, stadiums, airports, zoos, etc.
             o Offer carry-out, may have delivery and possibly sit-down facilities
   Domino’s C Stores
             o Non-traditional Co-branding stores
           o Typically located in smaller or underdeveloped markets
           o Offer services in convenient stores or similar surroundings
   Licensing
           o Issued to large public entertainers, or similar facilities
           o Only carry-out offered


Training Of the Prospective Franchisee
       Domino’s Pizza has a training facility for interested franchisees in Ann Arbor,
Michigan and to open or purchase a franchise, the applicant must show understanding of
basic accounting principles as well as pass a specialized Franchise Certification Test. The
beginning franchisee training consists of the following steps:
   Career Development Program – Fundamentals of Pizza making; basics of
     marketing, management, accounting, finance, etc.
   Franchise Orientation Class – Overview over the franchising process to identify
     which requirements are met and which not
   Presentation Skills Seminar – Improving the communication skills of a future store
     owner/manager
   Franchise Development Program – Six day program to establish the new franchisee
           o Policies and Procedures
           o Franchise Application
           o Franchise Contract
           o Financial Management
           o Safety and Loss Control
           o Human Resources
           o Computer and Database Marketing
           o Risk Management
           o Construction, Lease Management
           o Training
           o Marketing
       Once the prospective franchisee completed all the training, Domino’s Pizza is
willing to do business.


Further Training
       Training additional to the above listed prospective franchisee training costs a
maximum of $600 per class and is due at registering for classes. These fees include
required training materials for the employees, managers, prospective managers and
franchisee candidates; the fee does not include travel expenses. The franchisee alone is
responsible for all further training opportunities of store managers and employees.


Domino’s Pizza Fee Structure
       The initial franchising fee of Domino’s Pizza depends on the intention of the new
franchisee; therefore the fee can range from $0 to $3,250. The fee is a lump sum, that is
paid after being accepted as a franchisee and refundable if the application is withdrawn.


   $0 – If opening the first single store
   $1,500 – Entering through a license agreement or purchasing an existing store
   $3,250 – Opening an additional store or re-franchising a closed store


     A franchisee of a Domino’s Pizza store has to purchase inventory, supplies,
equipment, furnishings, etc. which will be provided through Domino’s Pizza Distribution
and other by Domino’s approved vendors. The costs for just these purchases are
estimated as follows:


   Domino’s Pizza Store : $68,750 - $145,750
   Domino’s Pizza Pizzazz Store : $68,750 - $177,750
   Domino’s C Store : $58,750 - $133,750


     For the Grand Opening the franchisee has to spend a minimum of $3,000 on
advertising and promotion, and the bills and receipts for these expenditures must be
provided to Domino’s within 90 days. A more detailed approximation of the initial
investment costs can be found in Appendix 3.
       There are no fees in the Development Agreement, but a few other fees might
occur through the franchise agreement.
   Supplemental or additional training – Amount not specified; franchisee must pay for
     travel and living expenses and the compensation of employees
   Assistance – Amount not specified; franchisee must pay for Domino’s personnel
     and living expenses, if franchisee repeatedly fail to comply with Development
     Agreement
   Costs of Enforcement – Amount not specified; costs to enforce the Development
     Agreement
   Indemnification – Amount not specified; franchisee must indemnify and hold
     Domino’s Pizza harmless if held liable from franchisees operations


     The following list will show and explain the fees for traditional, as well as non-
traditional store franchise agreements and licenses.
   Royalty Fee – 5.5% of Store’s weekly royalty sales
   Royalty Fee for licensees – 10% of gross sales
   Advertising Fund – 3% of Store’s weekly royalty sales
   Advertising Cooperatives – 1-5%
   Inspections – Amount: varies (incl. travel expenses, compensation etc.)
   Audit expenses – Amount: varies (cost of audit, understatement plus 1.5% monthly
     interest, etc.)
   Transfer - $1,500 when Franchise Agreement or store assets are transferred
   Training Fees – not more than $600 per class
   Interest on late payments – lesser of 1.5% or highest legal rate
   Insurance - $9,000 - $17,000 (property, liability, compensation)
   Testing and evaluation – Amount: varies
   Indemnification – Amount: varies (also for licensee)
   Costs of enforcement – Amount varies
Obligations of Franchiser and Franchisee
       The Franchisor has to grant the Franchisee under the Development Agreement the
right to open the stores within a certain area and should not unreasonably withhold
approval if the site meets the requirements; he also has to deliver the Franchise
Agreement.
       Within the Franchise Agreement is obligated to approve the lease of the premises,
provide the franchisee with standards and training programs, as well as reasonable
operating assistance. During the store operation Domino’s Pizza will provide information
on how to run a store, offer advice for operating problems and provide advertising. They
will also help with pricing and loan copies of the operating manual if needed.
       The obligations for the Franchisee exceed the ones of the Franchisor easily. The
Franchisee needs to:
   Select the site; deal with lease or acquisition
   Prepare pre-opening
   Develop the site
   Take part in training
   Open the store
   Pay the fees
   Comply with all standards and policies
   Pay attention to trademarks
   Follow the restrictions of services and products
   Deal with warranties and requirements of the customers
   Concern for territorial development
   Maintain the site and its appearance
   Deal with insurance issues
   Comply with the advertising
   Owner needs to be involved in management and staffing
   Hold inspections and audits
     The list for the franchisee goes on and each bullet point goes in more depth, which
can be read in the companies UFOC. It is obviously recommended to thoroughly study
the UFOC as a prospective Franchisee, because the obligations are not to take very easily.


Financing
       Domino’s Pizza offers limited financing for the Franchisee up to $100,000 per
store. The franchisee is required to purchase all equipment and supplies from the
company own Supply division, when purchasing used equipment from other sources it
needs to be approved by Domino’s Pizza. The APR of the financing is based on the
current 5 year treasury notes plus 550 basis points, with a floor rate of 11%. The loans
need to be repaid within 60 months and a 10% security for the loan must be deposited
with Domino’s Pizza.


International Franchising 8,9
       Domino’s Pizza learned from its start-up mistakes. In the mid 80’s the company
had to realize that different countries have different tastes and demands, so it started to let
the franchises run by locals who know the market.
       Today, in 2003, Domino’s Pizza International has more than 2000 (of which only
34 are not franchised) stores in more than 50 countries (Appendix 4) contributing $1
billion in pizza sales to company’s total revenues.
       The primary way of international franchising is done through Master Franchising,
where the interested local investor acquires the right to run Domino’s Pizza stores in a
certain country or territory. This kind of teamwork is supposed to be a win-win strategy
for both sides. The local investor knows the market, government regulations, and etc.
while Domino’s Pizza provides their experience in management and others. Not only the
products (food, drinks, etc.) are adapted to the local markets, also the store designs, the
methods of delivery, or the delivery vehicles are suited to fit into the new market.
       Besides the Master Franchising opportunity, there is another strategy to get
international presence and market share. Domino’s Pizza takes over local Pizza Chains,
as done in Australia in 1994. This is a fast and sometimes easier way to get a stronghold
in a new market.
       The primary products offered in the foreign markets are still the same as in the
home market of the USA: Pizza, side dishes and soft drinks. While the dough and the
cheese for the pizzas are provided from the US, the toppings will adapt to the local
market taste, to create “specialty pizzas”.
       The global competitors are basically the food players mentioned in the industry
overview; the companies from the sandwich market (McDonalds, Burger King, or
Subway), the restaurants in the chicken market (KFC), and other pizza competitors like
Pizza Hut.


Other International Challenges and Strategies

Domino’s in Malaysia 10
       Even though planning to expand its customer base in Malaysia, Domino’s Pizza is
not considering franchising to do so. The company got established in 1997 through a
Master Franchise with Dommal Food Services, but franchising is not an option so far.
There are a lot of inquiries of potential franchisees, but Domino’s Pizza is more
interested in establishing its brand name through its delivery services. It just launched a
new online ordering and delivery service that focuses mainly schools, offices and
colleges.


Domino’s and the Concerned U.K. Customers 11
       In 1999 Domino’s Pizza, together with other fast food chains, reacted to the
growing concerns of customers over transgenic ingredients in food. The transgenic food
presents a health risk and to work along with other food providers Domino’s Pizza is
among the pioneers to ban these food ingredients in its offered products.


Tariffs in Morocco 12
       In 2002 the USA and Morocco were holding bilateral talks about a FTA (Free
Trade Agreement) between both countries. Domino’s would benefit from a FTA in that
way that a 100% tariff on imported mozzarella cheese, used for the pizza, would
disappear. This saving would enable Domino’s Pizza to open 20 more units in Morocco
and strengthen its presence and market share.
Infrastructure in Poland 13
       Due to the limited availability of telephone lines in Poland, Domino’s Pizza had
to consider a change in strategies. The company, normally concentrating on pizza
delivery upon phone orders, realized that this concept would not work here; therefore
Domino’s Pizza strengthened the carry-out capabilities of the local stores to provide the
customers with what they need, pizza pick-up in stead of delivery.


                                       Conclusion
       Considering the above mentioned facts from different sources concerning
Domino’s Pizza, it is to say that the global pizza business is not easy, but looking at the
numbers mentioned before, it is a business that makes money when done right. Domino’s
Pizza with its strategy to build first a customer base and brand awareness among
customers during a Master Franchise penetration, before accepting Franchisees seems to
work. Domino’s Pizza seems to be aware of the different obstacles that different
countries and cultures bring and the company does a good job of adapting to them, by
working very closely together with locals who know the customs. If the management
continues doing a good job by following the strategy “when in Rome do it as the
Romans” the global pizza business will continue to be successful for them.
References
1
    Domino’s Pizza Inc. “Press Kit”. Retrieved July 01, 2003 from
    http://www.dominos.com
2
    Domino’s Pizza Inc. “See the Menu”. Retrieved July 01, 2003 from
    http://www.dominos.com
3
    Domino’s Pizza Inc. “Guiding Principles”. Retrieved July 01, 2003 from
    http://www.dominos.com
4
    Domino’s Pizza Inc. “Franchising Opportunities”. Retrieved July 01, 2003 from
    http://www.dominos.com
5
    Standard & Poor. “Restaurant Industry Survey”. October 03, 2002
6
    Domino’s Pizza Inc. “Franchising Opportunities”. Retrieved July 01, 2003 from
    http://www.dominos.com
7
    Domino’s Pizza Inc. “Franchising Opportunities”. Retrieved July 01, 2003 from
    http://www.dominos.com
8“
     Think globally, bake locally”. Fortune, October 14, 1996 v134 p205 (1)
9
    Domino’s Pizza Inc. “International Particulars”. Retrieved July 01, 2003 from
    http://www.dominos.com
10 “
      Domino’s not considering Franchising for Now”. Asia Africa Intelligence Wire, June
      12, 2003
11 “
      Food Retailers Bow To Health Concerns”. Chemical Week, March 17, 1999 v161 i11
     p14 (1)
12 “
      Written Comments to the Office of the United States Trade Representative On The
     Proposed U.S.-Morocco Free Trade Agreement”, November 22, 2002. Retrieved July
     01, 2003 from http://www.amcham-morocco.com
13
     Domino’s Pizza Inc. “International Particulars”. Retrieved July 01, 2003 from
     http://www.dominos.com
Appendix 1

Domino’s, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets


                                                          September 9, 2001               December 31, 2000

                                                              (Unaudited)                          (Note)
(In thousands)
Assets
Current assets:
     Cash                                                   $          36,789                $            25,136

     Accounts receivable                                              56,147                             48,682
     Inventories                                                      19,955                             19,086
     Deferred income taxes                                             9,290                              9,290
     Other                                                             8,132                             10,413
Total current assets                                                 130,313                            112,607

Property, plant and equipment, net                                     82,929                             85,313

Other assets                                                         167,688                            171,709

Total assets                                                $        380,930                 $          369,629

Liabilities and stockholder’s deficit
Current liabilities:
     Current portion of long-term debt                      $         28,909                 $           21,482
     Accounts payable                                                 34,953                             38,335
     Insurance reserves                                                7,802                              6,793
     Accrued income taxes                                             13,396                              2,778
     Other accrued liabilities                                        62,505                             55,924
Total current liabilities                                            147,565                            125,312

Long-term liabilities                                                666,466                            699,124

Stockholder’s deficit                                               (433,101)                          (454,807)

Total liabilities and stockholder’s deficit                 $        380,930                 $          369,629



________
Note: The balance sheet at December 31, 2000, has been derived from the audited consolidated financial statements at
that date but does not include all of the information and footnotes required by accounting principles generally accepted
in the United States for complete financial statements.
Source: Domino’s Pizza Inc. 2003
Appendix 2

Figure 1                                            Lower Cost                                 Differentiation

Broad Cross-Section
Of Buyers                                                                Sandwiches



                                                                       Dinner Houses
Narrow Buyer Segment

                                                                                         Contractors
                                                                    Pizza


Figure 2                                            Lower Cost                                 Differentiation

Broad Cross-Section                                                      Arby’s /
Of Buyers                                                                Wendy’s


                                                                         Applebee’s
                                              B K/McD
Narrow Buyer Segment                          Taco Bell
                                              Subway
                                                                                            Pizza Hut
                                                  Domino’s


Figure 3                                            Lower Cost                                 Differentiation

Broad Cross-Section
Of Buyers




Narrow Buyer Segment
                                              Domino’s
                                                                            Pizza Hut
                                               Papa Johns
                                                 Little Caesars

 Source: Adapted from Michael E. Porter, Competitive Strategy (New York: Free Press, 1980), pp. 35-40
                                    Appendix 3

Fee Structure


Expenditures         Domino’s Pizza       Domino’s Pizza       Domino’s Pizza
                     Store                Pizzazz Store        C Store
Initial fee          $0 - $3,250          $0 - $3,250          $0 - $3,250
Leasehold            $0 - $125,000        $0 - $175,000        $0 - $70,000
Improvements
Furniture &          $65,000 - $116,000   $65,000 - $140,000   $55,000 -
Equipment                                                      $110,000
Signage              $1,000 - $20,000     $1,000 - $28,000     $1,000 - $14,000
3 Month’s rent       $3,000 - $12,000     $4,000 - $15,000     $1,500 - $8,000
Security Deposit     $1,000 - 4,000       $1,000 - $5,000      $0 - $4,000
Opening Inventory    $2,750 - $6,500      $2,750 - $6,500      $2,750 - $6,500
& Supplies
Opening              $0 - $3000           $0 - $3000           $0 - $3000
Advertising and
Promotion
Training             $600                 $600                 $600
Insurance            $9,000 - $17,000     $6,000 - $13,000     $9,000 - $17,000
Miscellaneous        $2,500 - $7,000      $2,500 - $7,000      $2,500 - $7,000
Opening Costs
Additional Funds,    $10,000 - $60,000    $10,000 - $60,000    $10,000 - $60,000
3 Months
Total estimated      $119,850 -           $117,850 -           $82,350 -
initial investment   $374,350             $456,350             $303,350


Source: Information based on Domino’s Pizza UFOC 04/01/02
                                              Appendix 4

                             2001 Year Ending Market Presence

Alaska*                     Egypt                       Kuwait                   Spain
Aruba                       El Salvador                 Lebanon                  Sri Lanka
Australia                   England                     Macao                    St. Maarten
Bahamas                     France                      Mexico                   St. Lucia
Bahrain                     Germany                     Morocco                  Switzerland
Belgium                     Greece                      Northern Ireland         Taiwan
Bolivia                     Guam*                       Netherlands              Thailand
Brazil                      Guatemala                   Nicaragua                Turkey
Canada                      Haiti                       Panama                   United Arab Emirates
Cayman Islands              Hawaii*                     Peru                     Venezuela
Chile                       Honduras                    Philippines              Virgin Islands
China                       Hong Kong                   Poland                   Wales
Colombia                    Iceland                     Portugal
Costa Rica                  India                       Puerto Rico*
Curacao                     Indonesia                   Russia
Cyprus                      Ireland                     Saudi Arabia
Denmark                     Israel                      Scotland
Dominican Republic          Jamaica                     Singapore
Ecuador                     Japan                       South Korea
* U.S. States, possessions, or territories administered by Domino’s Pizza International, Inc. (DPII)

The top ten markets outside of the United States for DPII are:
1. Mexico                                                                                  428
2. The United Kingdom (includes England, Northern Ireland, Scotland, & Wales)              238
3. Canada                                                                                  208
4. Australia                                                                               195
5. Japan                                                                                   174
6. South Korea                                                                             163
7. Taiwan                                                                                  108
8. India                                                                                    92
9. Netherlands                                                                              52
10. Saudi Arabia                                                                            39

The Netherlands and France (34 units) are operated through our wholly owned
subsidiaries, while the remainder of the markets are operated by franchisees.

________
Source: Domino’s Pizza Inc. 2003
                                    Appendix 5

Domino’s Pizza Inc. Uniform Franchise Offering Circular (following pages)

				
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