DMP 0.03% $32.60 domino's pizza enterprises limited

Ann: Appendix 4D FY2019, page-9

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  1. 7,719 Posts.
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    This one (from the Franchising Inquiry report linked to above) might reduce franchise sales in Aus, with the disclosure of the margins of the $5 pizzas. Best case this would mean that the economics would need to be explained carefully to get the franchise sale over the line (assuming anybody reads those franchisor disclosure documents.

    Have to admit I like the idea!

    Recommendation 7.1
    7.52 The committee recommends that the Franchising Taskforce examine how to
    amend the Franchising Code of Conduct to provide that franchisors are required
    to include within the disclosure document to franchisees for the two year period
    prior to the franchisee entering the franchise:
     where the maximum resale price of each item has been below the cost
    price of the product purchased by the franchisee including, but not
    limited to, the cost of the product inclusive of any fees associated with the
    purchase of the product, royalties, other fees and fixed and variable costs
    in relation to the purchase and sale of the product have been added; and
     the margin between the purchase price paid by the franchisee and the
    maximum price or recommended resale price of the top five by volume of
    goods and services sold by the franchisee; and
     if data is not available for that particular franchise, then data for a
    comparable franchise needs to be provided.''
    Last edited by CaptainBarnacles: 14/03/19
 
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