CASE STUDY II
OWNING A SLICE OF THE ACTION
A DOMINO’ S PIZZA FRANCHISE 1. According to the article, Domino’s Pizza is a second largest pizza franchise, and it is called a “franchisor,” or business owner. Domino’s sells others the right to use its name and sell its products in specific geographic area. As usual, an entrepreneur, a person who risks time and money to start and manage a business, may be interested in opening his/her own business by purchasing a franchise, and is called a franchisee. However, there are many benefits of owning a Domino’s franchise. First, Domino’s is a strong global brand, and with the Domino’s reputation, new business is easier to start because the consumers are familiar with the products. Second, along with reputation of Domino’s, franchisees benefits from the national advertising programs. The franchisees are also assisted to be given the access to suppliers with the products and price, this makes the Domino’s franchise more profitable. In addition, Domino’s franchisees are not required to have experience because they will be trained and guaranteed in succeeding; therefore, owning a Domino’s franchise has a higher rate to succeed than start up a normal pizza business. In contrast, the franchisees will have great opportunities to reach to the high revenue, and Domino’s, at the same time, will earn great royalties (the fees paid to franchisor) from their franchisees. In the whole, both Domino’s and its franchisees benefit; the success of franchisees with great profit also brings the Domino’s to a high value company.

2. In this case, Scott Hinshaw and Russell Weiner expressed that the process took time and effort to archive. This is about the culture, openness, and transparency at Domino’s. This suggests the Domino’s ethics in the marketplace. As mentioned, Hinshaw said that the company tried to convince its franchisees the