Domino's Pizza NNN Property Lease: Pros, Cons, and History

Contact us for a complimentary broker opinion of value for your off-market Domino’s Pizza NNN property for sale or Domino’s Pizza ground lease property for investment, specifically tailored to support your 1031 exchange requirements. This valuable assessment will provide you with the necessary clarity to make informed decisions regarding the sale of your Domino’s Pizza NNN property or the inclusion of a Domino’s Pizza ground lease property in your investment portfolio. As specialists in working with 1031 exchange buyers seeking off-market Domino’s Pizza properties, we are dedicated to delivering competitive offers with reduced fees to help you maximize your investment returns.

Number of locations

As of January 2023, Domino’s Pizza boasts a widespread presence with over 17,500 stores in various countries and territories worldwide.

Revenue and income

In 2022, Domino’s Pizza achieved total revenue of approximately $16.1 billion. The company reported a net income of around $1.5 billion during the same year.

Future plans

Domino’s Pizza has ambitious plans for the future, aiming to enhance its global reach further. Throughout 2023, the company intends to establish more than 2,000 new stores worldwide. Additionally, Domino’s Pizza remains dedicated to innovation, focusing on advancements such as digital ordering systems and delivery technologies.

Corporate vs. franchise

Approximately 90% of Domino’s Pizza outlets operate as franchise locations, while the remaining 10% are owned and operated by the corporation. Franchisees interested in partnering with Domino’s Pizza typically incur a franchise fee ranging from $25,000 to $75,000 and an ongoing royalty fee of 7-9% of gross sales.

Additional information Domino’s Pizza Properties

Domino’s Pizza originated in 1960 in Ypsilanti, Michigan. The brand’s name reflects its commitment to delivering pizzas within 30 minutes. Domino’s Pizza stands as a leading pizza delivery and carryout chain worldwide. The menu features a diverse range of pizzas, sides, and desserts. Domino’s Pizza operates as a subsidiary of Domino’s Pizza, Inc., a dedicated pizza conglomerate.

Domino’s Pizza History

Domino’s Pizza traces its origins to 1960 when Tom Monaghan and his brother, James, purchased a small pizzeria named DomiNick’s in Ypsilanti, Michigan. The name was later changed to Domino’s Pizza in 1965. The company’s unique focus on delivering pizzas quickly set it apart. Domino’s Pizza rapidly gained popularity through innovative practices like the 30-minute delivery guarantee.

Why Invest in Ground Lease and NNN Lease of Domino’s Pizza?

Investing in Domino’s Pizza’s ground lease and triple net (NNN) lease properties presents compelling reasons:

1) Domino’s Pizza NNN Property Investment: Stable income

Benefit from Domino’s Pizza’s strong brand and widespread presence, ensuring a stable income stream through the ground and NNN leases over the long term.

2) Domino’s Pizza NNN Property Investment: Established tenant

Domino’s Pizza’s established brand reduces the risk of lease defaults or vacancies, offering your property a reliable and consistent tenant.

3) Domino’s Pizza NNN Property Investment: Low management responsibility

With ground and NNN leases, the tenant takes charge of property maintenance and expenses, freeing landlords from extensive management duties.

4) Domino’s Pizza NNN Property Investment: Favorable lease terms

Long lease durations with incorporated rent adjustments provide predictable income and potential for rental growth.

5) Domino’s Pizza NNN Property Investment: Real estate value

Strategic locations of Domino’s Pizza outlets, often in high-traffic areas, can enhance property value and offer prospects for capital appreciation.

Pros and Cons of Domino’s Pizza Ground Lease and NNN Lease Investment

Pros:

1. Stable income backed by a well-recognized brand.
2. Established tenant minimizes risks related to vacancies and lease defaults.
3. Landlords enjoy reduced management responsibilities.
4. Long lease terms contribute to income stability and growth potential.

Cons:

1. Lease renewal uncertainties upon term expiration.
2. Investment-linked to Domino’s Pizza’s operational challenges and success.
3. Competitive market and saturation could impact profitability.
4. Limited influence over property decisions.
5. Inherent economic and market risks associated with real estate investments.

Thoroughly conducting due diligence, and considering location, lease terms, tenant strength, and investment strategy, is crucial. Rely on advice from real estate experts and financial advisors to align with your objectives and risk tolerance.

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Interested in selling your Domino's Pizza NNN property or Domino's Pizza lease property and was wondering what you can get for it in today’s changing market?