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FRANCHISING
Jubilant Foodworks Limited
Jubilant FoodWorks Limited has the franchisee for two International
brands under its roof namely Dominos and Dunkin Donuts.
The company plans to maintain its leadership by increasing its footprint
across the country.

SUPPLIERS

Dairy Fresh fruit Cheese, dips


Beverages
products & vegetables and sauces
Dynamix Dairy Industries
Parag Milk Foods Pvt
ITC Ltd Dabon International Pvt
Modern Dairies Coca-Cola India Pvt Ltd
FieldFresh Foods Pvt Dr Oetker India Pvt.
Gujarat Co-operative Milk
Marketing Federation

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Presence Across Countries More than 14,000 franchised and Company owned
Restaurants in more than 85 international markets

Beginning of Restaurants in India 1st restaurant opened in New Delhi, India in Mar96

Presence in India India is currently the biggest market for Dominos Pizza
outside the United States
The company revolutionised the concept of pizza delivery
in India, with its delivery within 30 minutes, or no
payment campaign
Contract Details with Jubilant Exclusive right to open Dominos Pizza restaurants in
Foodworks India, Sri Lanka, Bangladesh and Nepal
Current franchising agreement till December 2024 with
right of renewal for another 10 years

Domino's, which is valued at $1.6 billion in India, has tried expanding its business by getting
3 Indian consumers to view pizza as a meal replacement, and not just a snack.
TIMELINE

2017: It added 91 new stores


making the total no. of outlets as
1,125 in 264 cities

2010: Company goes


public with outlet count
of around 300.

2006: Dominos Pizza


outlet count crosses 100

1995: Jubiliant Foodworks enters into


master franchise agreement with Dominos
for North and West regions of India

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Consumer Food Service: Market Outlook

Format 2016 CAGR 2021 Growth Factors for FSI

Pro-growth Demographics (increased


Chained Market Rs 204 bn (7%) 20.1% Rs 509.5 bn youth population, nuclear family & more
(10%) working women)
Higher disposable income
Standalone Rs 810.8 bn 13.6% Rs 1532 bn Greater urbanization
Market (26%) (31%) Changing consumer preferences
widening exposure to new cultures and
Unorganized Rs 2076.4 bn 7.2% Rs 2939.5 bn
cuisines
Market (67%) (59%)
Business potential in transit locations

Total Rs 3091.1 bn 10% Rs 4981.3 bn

Quick Service Restaurants constitute 45% of the chained market

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DOMINOS BUSINESS SEGMENTS
Supply chain Company Franchised
segment owned stores restaurants
These stores are used to
US franchise locations
test its products,
Manufacture fresh accounted for 12% of total
promotional, or
dough and other food sales, and international
operational activities
items franchise revenue
before rolling them out
accounted for 7%.
system wide

Delivery of food items, as


Franchised restaurants in
well as equipment and Consists of restaurants in
the US as well as in
supplies, to franchised and the US market
international markets
company-owned stores

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DOMINOS PIZZA
Domestic Market International Market

Grants independent franchise Uses the master franchisee


owners the right to open approach.
additional franchised stores

Franchise Terms
- Charges a royalty fees
- Charged as a percentage of sales
- Royalty revenue accounts for 12% of its revenue
- 6% marketing and advertising fee based on sales from domestic franchisees

Dominos Papa Johns YUM!


5.5% 5% 4%-6%

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MASTER FRANCHISE MODEL
Master franchises can sub-franchise or run another pizza restaurant themselves.
The master franchise agreement also gives the master franchisee operating rights to a
supply chain in a given region
Requirements for a potential master franchisee

Appreciation of real
Knowledge of local Understanding of
Access to capital estate restrictions
laws local consumers
in the region

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Franchise model, cost and fee
Date Incorporation: 1963
Franchising Since: 1967
Number of Units: 13,800

Financial Assistance:
The franchisor does not offer direct or indirect financing
Franchisees of the Domino's Pizza system are eligible for expedited and streamlined loan
processing

Training and Assistance:


Franchisees or their owners must complete all training required to operate the store
The type and duration of the training will depend on whether franchisees have at least 12
consecutive months of current management or supervisory experience within the Dominos
Pizza system and completed Dominos Pizza High Performance University Crew and
Manager Development Programs.
Post completion, franchisees will be required to complete the franchise pre-qualification
process.
If qualified, franchisees will be required to complete all of the required tracks of the
9 Franchise Management School (FMS) to obtain Qualified Franchisee Candidate status.
Traditional Non-traditional Transitional Licensed stores
stores stores stores

Shopping centres, Office buildings, Certain select


Location retail locations toll roads, airports, markets not suited Stadiums
zoos for traditional stores

Sell pizza and other Ordinarily only Generally, offer


authorized products carry-out service carry-out service.
Services offered through delivery, but may offer sit- Delivery offered till Carry-out service
carry-out services down facilities point of full service
and sit-down facility

Assigned area of No exclusive No exclusive No exclusive


Territory primary territory territory territory
responsibility

10Term of
agreement 10 years 10 years 5 years Dynamic
Franchise cost: India
The franchise can be started only as a partner of master franchisee, i.e. Jubilant
FoodWorks Limited, who is sole partnership decision taker for this purpose

The application process may take 1 to 3 weeks, then next 2-6 weeks are required for
selecting store and taking a decision

Traditional stores: 65 Lakh to 2 Crores


Non-traditional stores: 50 Lakh
Transitional stores: 30 Lakh

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Indian Approach

Pizza is a cross-cultural food

Pizza Maniaa 35-rupee pizza


that takes exactly 2.5 minutes
to make and 6 more to bake

Picking locations after a market study:


Small cities: large dine-in space
Large cities: small stores for takeaway

Each stores area is meticulously mapped

The chefs go on regular food walks


through markets
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Sourcing

Each commissionaire is responsible


for providing its specialty product:
Delhi Pizza dough
Kolkata Tomatoes
Bangalore Spices

Inter store transfer in the event of


uncertain conditions

At least four days of inventory is


maintained

Mini cold storage at each outlet

Inventory levels are monitored


centrally via POS data

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Delivery Network

Customer touchpoints: 20,00,000


Restaurants Pizzas sold globally
Takeaway stores 2x each day
Indian Railways the orders served in
Mobile App the US 99.6%
Online Ordering success rate
Delivery for delivery in
under 30 mins
Dominos on the go

4 minutes + 6 minutes + 5 minutes + 8-9 minutes

Order Packing and


Oven Delivery
received pickup

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THANK YOU
Group 7
B001 Sahej Abrol
B002 Vagisha Agarwal
B009 Srishti Chaddha
B021 Garvit Gupta
B030 Taranum Kaur
B052 Angad Singh

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APPENDIX

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Initial Investment: Traditional Stores
Name of Fee Low High
Initial Fee $0 $25,000
Leasehold Improvements $25,000 $225,000

Furniture, Fixtures and Equipment $81,000 $145,000

Signage $5,200 $35,000


3 Month's Rent $3,000 $12,000
Security Deposit $1,000 $4,000

Opening Inventory and Supplies $2,750 $6,500

Opening Advertising and Promotion $0 $3,000

Training Expenses $500 $1,700


Domino's PULSE Training Expenses $1,200 $1,200
Insurance $9,000 $17,000
Miscellaneous Opening Costs $2,500 $7,000

Additional Funds - 3 Months $10,000 $60,000

TOTAL ESTIMATED INITIAL


17 $141,650 $542,400
INVESTMENT