About Donatos Pizza Franchise
Donatos Pizza is a premium pizza franchise known for its signature Edge to Edge toppings and thin, crispy crust that covers every bite.
Backed by Destiny Investment Holdings, LLC, the brand has been franchising since 2005 and has built a devoted following in the Midwest and beyond with its commitment to quality ingredients and generous toppings.
The franchise fee is $30,000.
Donatos Pizza Franchise Cost & Fees
Minimum Investment
$392K
Average Investment
$571K
Maximum Investment
$751K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | 4% of Net Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 4% (currently 0.75%) of Net Sales | National brand fund |
| Total Investment Range | $391,500 – $750,747 | Includes build-out, inventory, working capital |
The investment range of $392K–$751K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (4% of Net Sales) and marketing fee (Up to 4% (currently 0.75%) of Net Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 |
| Security Deposit Under Lease | $0 | $10,883 |
| Three Months’ Lease Rent and real estate expenses | $6,000 | $20,000 |
| Leasehold Improvements/Construction | $34,000 | $260,000 |
| Furniture, Fixtures, Equipment | $233,000 | $274,364 |
| Computer System | $16,000 | $21,000 |
| TRIO Software License Fee | $4,500 | $4,500 |
| Liquor License | $0 | $10,000 |
| Opening Inventory and Supplies | $15,000 | $25,000 |
| Grand Opening Marketing Program and Initial Marketing Expenses | $25,000 | $30,000 |
| Training Expenses | $1,000 | $20,000 |
| Miscellaneous Opening Costs | $2,000 | $5,000 |
| Additional Funds – 3 months | $25,000 | $40,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $0-$15,000 |
| Renewal Fee | $0 |
| Technology Fee | Currently $200 per month |
| Audit Fee | Cost of inspection or audit |
| Miscellaneous Computer Software Fees | Our then current charges, based on the project or task involved |
| Reimbursement of Upgrading and Maintenance Costs | Our costs and expenses, plus 15% administrative fee, plus interest if applicable |
| Cooperative Advertising | Typically between 1% and 4% of Net Sales |
| Additional Training or Assistance | Currently approximately $300 per person per day plus expenses |
| Training Fee (for second or subsequent restaurant opening) | Lesser of (i) $15,000, or (ii) our actual costs and expenses associated with providing the Opening Training |
| Fee for Hiring Donatos Manager | $5,000 - $50,000 |
| Interest (on overdue amounts) | Lesser of 1.5% per month or highest commercial contract interest rate law allows |
| Insufficient Funds Charge | Our out-of-pocket expenses |
| Management Fee (if franchisor manages after death/disability) | Up to 8% of Net Sales, plus costs and expenses |
| Costs and Attorneys’ Fees | Will vary with circumstances |
| Indemnification | Will vary with circumstances |
| Online Ordering Transaction Fee | $0.35 to $0.50 per order placed online |
| New Product or Supplier Testing | Cost of Testing |
| Insurance (if franchisor obtains for franchisee) | Actual cost of premiums, plus 20% |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Franchise Partner Onboarding: 5 days; Operational Management Training: 6 weeks; Manager In Training (MIT) program: 6 weeks; Marketing Coordinator: 2 weeks. Opening Training team stays for up to 5 weeks. |
| Classroom Training | Franchise Partner Onboarding: 0; Operational Management Training: 4; Manager In Training (MIT) program: 0; Marketing Coordinator: 0 |
| On-the-Job Training | Franchise Partner Onboarding: 48; Operational Management Training: 306; Manager In Training (MIT) program: 306; Marketing Coordinator: 80 |
| Training Location | Certified Training Restaurant, Home Office (Columbus, Ohio), The Restaurant to be opened |
| Additional Training | Additional or refresher training courses, periodic conventions and programs; additional or special assistance or training that you or your Associates need or request. Cost of additional training depends on training required and experience level of trainer. Franchisor may also charge for updated, additional or refresher training materials. Web-based learning management system (LMS) with an annual subscriber fee of no less than $500. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Limited Exclusive (Area of Primary Delivery Responsibility) and Non-exclusive (Development Territory) |
| Exclusive Territory | No |
| Territory Size | No minimum size for Site Selection Area or Area of Primary Delivery Responsibility. Development Territories usually an entire city or county. |
| Description | For single-unit franchisees, a Site Selection Area is designated to find a site. Once a site is approved, an Area of Primary Delivery Responsibility is defined, based on an 8-minute drive time from the restaurant. Within this area, the franchisor and its affiliates will not operate or franchise brick and mortar Donatos Pizza Restaurants, except for Non-Traditional Sites (which will not offer delivery into the area). However, third-party delivery services (DSPs) can deliver Donatos Core Products into the area from other Donatos locations or licensees. For multi-unit developers, a Development Territory (city or county) is granted, with similar limitations regarding Non-Traditional Sites and DSPs. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years |
| Renewal Term | 5 years |
| Renewal Fee | $0 |
| Renewal Conditions | Franchisee must give written notice (180-365 days before term end), comply with all obligations, remodel/upgrade the Restaurant to current new Donatos Pizza Restaurant standards, and continually operate consistent with franchisor's mission/philosophies. Owners must sign then-current franchise agreement (no initial/renewal fee) and a general release. |
| Transfer Fee | $0-$15,000 |
| Transfer Conditions | Transferee must qualify (business experience, aptitude, financial resources), have no competitive business, complete training, sign current franchise agreement, pay transfer fee, transferor signs general release, purchase price/terms won't adversely affect operation, transferor's financing subordinate, transferor/owners agree to non-compete. |
| Termination for Cause | Franchisor may terminate for various reasons, including failure to locate site within 180 days, material misrepresentation, unsatisfactory training, abandonment, unauthorized transfer, felony conviction, failure to maintain insurance, interference with inspection, unethical conduct, misuse of marks, health/safety violations, loss of site, failure to pay taxes/suppliers, understatement of sales, repeated defaults, bankruptcy, or failure to cure other breaches within 30 days. Also, failure to achieve minimum quality scores on inspections. |
| Non-Compete Period | 3 years |
| Non-Compete Details | No owning interest in, or performing services for, any Pizza Business that operates in, or within 10 miles of, the Area of Primary Delivery Responsibility or Development Territory or within 10 miles of any other Donatos Pizza Restaurant for 3 years. Excludes small ownership (<3%) in publicly traded companies. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Franchisee is required to participate personally in, and devote full time and best efforts to, the Restaurant’s on-site operation. If an entity, an 'Operating Partner' must (A) either (i) directly or indirectly own at least 5% of ownership interests or (ii) receive compensation based on profitability (>=5% of outstanding Ownership Interests), and (B) devote at least 40 hours per week to the operation of the Restaurant(s). |
| Required Suppliers | Software; Computer System (portion from franchisor); Online Ordering System; all equipment, food products, beverage products, insurance, uniforms and certain operating supplies (from approved suppliers); all pizza dough (from approved third party distributors, manufactured by franchisor). |
| Supply Restrictions | Franchisees must purchase or lease all Operating Assets, Products, and other products and services according to franchisor standards and specifications, and from designated or approved suppliers/distributors (which may include the franchisor or its affiliates). Franchisor manufactures and sells pizza dough to approved third-party distributors, who are the only approved suppliers for dough. Franchisor is the only approved supplier for software, a portion of the computer system, and the online ordering system. |
| Franchisor Revenue from Suppliers | $5,665,888 (from selling products/services to franchisees); $68,465 (from suppliers based on franchisee purchases, contributed to National Marketing Fund); $621,555 (affiliates from leasing real estate to franchisees, no longer for new restaurants). |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or obligation. |
Donatos Pizza Franchise Earnings — Item 19
Average Revenue
$1.3M
Median Revenue
$1.2M
Revenue Range
$497K – $2.7M
Sample Size
152 units
Past financial performance does not guarantee future results. Individual results will vary.
Donatos Pizza Litigation & Risk Flags
Clean Litigation RecordDonatos Pizza has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Donatos Pizza System Growth
Total Units
169
Franchised
117
Company-Owned
52
Donatos Pizza currently operates 117 franchised locations and 52 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 3 | 4 | 160 |
| 2020 | 10 | 2 | 168 |
| 2021 | 4 | 3 | 169 |
Transfers: 22 | Closures: 9
Franchisor Financials (Item 21)
Revenue
$121.9M
Net Income
$1.1M
Total Assets
$102.3M
Audited by KPMG LLP for year ending January 3, 2022.
Donatos Pizza Franchise — FAQ
The total investment to open a Donatos Pizza franchise ranges from $391,500 to $750,747, per their Franchise Disclosure Document. This includes the initial franchise fee of $30,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Donatos Pizza charges a royalty fee of 4% of Net Sales of gross sales, plus a Up to 4% (currently 0.75%) of Net Sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Donatos Pizza Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Donatos Pizza to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Donatos Pizza franchise owners report average revenue of $1.3M and median revenue of $1.2M. This is based on a sample of 152 units. Past performance does not guarantee future results.
Donatos Pizza has been franchising since 2005. The FDD shows an investment range of $391,500-$750,747, a 4% of Net Sales royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $30,000 and the total investment ranges from $391,500 to $750,747 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Donatos Pizza and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Donatos Pizza or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com