Domino's Pizza Group in the UK has announced a new five-year agreement with its franchise partners, aiming to accelerate store expansion and foster further investments.
The updated Profitability and Growth Framework is set to take effect on January 3, replacing the current agreement. According to a company statement, the new framework has received "unanimous support" from franchise partners and focuses on shared investments in marketing and technology. Additionally, it introduces incentives to encourage new store openings.
A notable change in the framework includes extending the payment period for new store incentives from three years to five years, underlining Domino's commitment to supporting its franchisees.
Domino's is targeting system sales of £2 billion by 2028, fueled by a planned expansion to over 1,600 stores. In line with this strategy, the company recently projected the opening of 50 to 60 new outlets in the fiscal year 2024 and anticipates reaching its 1,400th store milestone next year.
The London-listed company, which operates as part of the US-based Domino's Pizza umbrella in the UK and Ireland, reported positive performance metrics in the initial weeks of the fourth quarter. Total orders increased by 5.3%, while like-for-like sales grew by 2.7%.
This strategic move highlights Domino's ongoing efforts to strengthen collaboration with its franchisees, enhance profitability, and solidify its market presence. Photo by Philafrenzy, Wikimedia commons.