Domino’s Pizza Group is cosying up to its largest franchisee in London to create a newly-formed entity designed to allow it to capture more of the market.
As part of the transaction, Domino’s will pay £24m for a 75% stake in the venture, whose assets will consist of all the franchisee’s current operations, which extends to 25 stores.
“The creation of the partnership will enable [us] to take advantage of the significant growth opportunity in the London area,” the company stated.
The transaction is subject to final contract, with completion expected in September 2017.
Domino’s Pizza Group holds the master franchise agreement to own, operate and franchise Domino’s stores in the UK, the Republic of Ireland, Switzerland, Luxembourg and Liechtenstein.
In addition, it has a controlling stake in the holders of the Domino’s master franchise agreements in Iceland, Norway and Sweden, as well as an associate investment in Germany.
The group boasts 1,130 stores across six markets.
Since opening the first Domino’s store in the UK in 1985, it now has around 1,000 stores across the country and more than 35,000 staff.
In November 2016, Domino’s increased its long-term store target for the UK to 1,600 and to 400 stores for markets outside of the UK.