Generally Master Agreements with the US are for 10x years with reciprocal options to extend... whilst yes there might be a minor risk i would suggest unless they became insolvent there's little risk.. They (DMP) have always had a great relationship with the US and whilst DMP might be under pressure... its still a very profitable business... the ASX just got so used to large double digit growth (for DMP) they got punished for not replication every year since...
Excerpt from USA Domino's document: ( https://ir.dominos.com/static-files/5a31b17e-0308-4fc4-ac72-d57e42702c89)
"Our master franchise agreements generally grant the franchisee exclusive rights to develop and sub-franchise stores and the right to operate supply chain centers in particular geographic areas. Agreements are generally for a term of ten years, with options to renew for additional terms. The agreements typically contain growth clauses requiring franchisees to open a minimum number of stores within a specified period. The master franchisee is generally required to pay an initial, one-time franchise fee as well as an additional franchise fee upon the opening of each new store. The master franchisee is also required to pay a continuing royalty fee as a percentage of sales, which varies among international markets, and averaged approximately 3.0% in 2019."
Ann: Trading Update, page-344
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Last
$31.45 |
Change
-0.660(2.06%) |
Mkt cap ! $2.909B | |||
| Open | High | Low | Value | Volume |
| $31.99 | $32.12 | $31.39 | $8.085M | 254.4K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 5 | 71 | $31.45 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $31.48 | 240 | 4 |
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| Last trade - 11.46am 18/09/2024 (20 minute delay) ? |
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