Domino's Pizza

Date Incorporation: 1963 Franchising Since: 1967 Headquarters: Ann Arbor, Michigan Business Description: The franchisor, Dominos Pizza Franchising LLC, offers Traditional, Non-Traditional and Transitional Domino's Pizza Store concepts under which the franchisee will operate a Domino's Pizza Store selling pizza and other authorized products through delivery and carry-out services. Franchise Offer: Below are the franchise formats Dominos Pizza employs: 1. Domino's Pizza Traditional Stores are retail outlets located primarily in shopping centers, strip centers and similar retail locations appropriate parking for delivery vehicles and customers of the store. Domino's Pizza Traditional Stores sell pizza and other authorized products through delivery and carry-out services. 2. Domino's Pizza Non-Traditional Stores sell Domino's pizza and other authorized products and services at non-traditional locations. These locations include office buildings, shopping malls, stadiums, toll roads, airports, zoos, convenience stores and similar retail facilities. Domino's Pizza Non-Traditional Stores will ordinarily offer only carry-out service but may have sit-down facilities depending on the location. 3. Domino's Pizza Transitional Stores are locations where the menu is customized to fit the location. Domino's Pizza Transitional Stores are located in select markets that have fewer potential customers than Domino's Pizza Traditional Stores. Domino's Pizza Transitional Stores generally offer carry-out service only as of the date of the opening of the store and as market conditions materialize. The delivery service will be expanded to the point where full delivery service is offered. At that time the franchisee has an opportunity to convert the Transitional Store to a Domino's Pizza Traditional Store at the same location or such other location as approved by the franchisor. 4. The franchisor also issues licenses to large public entertainment or similar facility operators, like stadiums or their concessionaires, to sell approved products for a license fee based on facility sales. The Licensee can sell pizza and other authorized products for carry-out service at the facility. Financial Assistance: No direct or indirect financing is offered to the franchisee. The franchisor does not guarantee the franchisees note lease or obligation. Training and Assistance: The franchisee must complete all training programs and classes to the franchisors satisfaction. The franchisor may from time to time accelerate or modify the basic eligibility and training requirements at their discretion based on the franchisees operational

experience and business acumen. If the franchisee does not have recent management or supervisory experience in the Domino's Pizza System, the franchisee will be required to complete an individualized training program designed to accelerate development in the Domino's System. If the franchisee does not have sufficient prior experience with Domino's PULSE the franchisor may require the franchisee to successfully complete training in the use of Domino's PULSE. The training consists of two (2) days of on-site training. It is taught by third party instructors (Franchise Installation Specialists) in the store at the time of the installation of the Domino's PULSE system. Franchisees are responsible for training all of their managers and team members. Territory: The franchisee will operate the store only at a location approved by the franchisor. The franchisee will not receive an exclusive territory under the Traditional store franchise agreement, the Non-traditional store franchise agreement or the Transitional store franchise agreement. However, the franchisee is assigned an area of primary responsibility. The boundaries of the area of primary responsibility will be inserted in the Standard Franchise Agreement when it is signed. The area of primary responsibility will generally be a 1 mile radius around the Store, a 1 mile radius from a street intersection or a written description equivalent to a 1 mile radius, except that in densely populated areas, it generally will be a mile radius. Term of Agreement and Renewal: The term of the franchise agreement is 10 years for the Standard Franchise Agreement and the Non-Traditional Store Franchise Agreement and five years for the Transitional Store Franchise Agreement. These agreements can be renewed for 10 years for the Standard Franchise Agreement and the Non-Traditional Store Franchise Agreement, and one additional five-year term, provided at the end of the initial term and renewal term for the Transitional store franchise agreement if the franchisee meets certain requirements. Obligations and Restrictions: The store must always be under the on-premises supervision of the franchisee or the Controlling Person. The franchisee or the controlling person must devote their full time as manager of the store. The franchisee must offer for sale all products required by the franchisor and make all menu items available for carry-out and delivery from the store. The franchisee may not offer for sale any products that have not been approved. The franchisor can periodically change the types of authorized products. Currently, the franchisor grants single store franchises only to applicants who have recently been a successful manager or supervisor of a Store for at least 12 months. The franchisor requires that the Controlling Person own 51% or more of the pizza venture. If the Controlling Person does not have recent management or supervisory experience in the Domino's Pizza system he or she is required to have significant multi-unit food or small business experience. The Controlling Person of a Domino's Pizza franchise may not have financial or operational involvement in another business outside of Domino's Pizza, without prior written approval which may be withheld in the franchisors sole judgement. Estimated Number of Units: 9,750 Investment Tables: Initial Investment:

Traditional Store: Low High Initial Fee $0 $25,000 Leasehold Improvements $25,000 $150,000 Furniture, Fixtures and Equipment $62,000 $145,000 Signage $2,500 $30,000 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 $1,000 Domino's PULSE Training Expenses $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 INVESTMENT $119,950 $461,700 Non Traditional Store: Name of Fee Low High Initial Franchise Application Processing Fee $0 $25,000 Leasehold Improvements $5,000 $150,000 Furniture, Fixtures and Equipment $62,000 $136,000 Signage $2,500 $30,000 3 Month's Rent $3,000 $12,000 Security Deposit $1,000 $6,500 Opening Inventory and Supplies $2,750 $6,500 Opening Advertising and Promotion $0 $3,000 Training Expenses $1,000 Domino's PULSE Training Expenses $1,200 Insurance $6,000 $17,000 Miscellaneous Opening Costs $2,500 $7,000 Additional Funds - 3 Months $10,000 $60,000 TOTAL ESTIMATED INITIAL INVESTMENT $96,950 $455,200 Transitional Store: Name of Fee Low High Name of Fee

Initial Fee $0 $25,000 Leasehold Improvements $15,000 $100,000 Furniture, Fixtures and Equipment $10,500 $100,000 Signage $2,500 $30,000 3 Month's Rent $2,400 $10,500 Security Deposit $800 $3,500 Opening Inventory and Supplies $1,500 $6,500 Opening Advertising and Promotion $0 $3,000 Training Expenses $1,000 Domino's PULSE Training Expenses $1,200 Insurance $6,000 $17,000 Miscellaneous Opening Costs $1,500 $5,000 Additional Funds - 3 Months $5,000 $30,000 TOTAL ESTIMATED INITIAL INVESTMENT $47,400 $332,700 Ongoing Fees: Type of Fee Royalty Fee Amount 5.5% of Store's weekly Royalty Sales 4% of Store's weekly Royalty Sales. Advertising Fund Non-Traditional Stores and Transitional Stores may receive a partial credit or make a reduced contribution. Advertising Cooperatives 1-4% Inspections Will vary under circumstances Cost of audit, charges of employees, understatement plus 1.5% Audit Expenses interest per month Transfer $1,500 Training Fees Maximum cannot exceed $1,000 per session Lesser of 1.5% per month or highest legal rate for open account Interest on Late Payments business credit in the state Store Charges for Testing and Will vary under circumstances Evaluation Indemnification Will vary under circumstances Costs of Enforcement Will vary under circumstances Annual Software $415 per store per year, after the first year Enhancement Fee