*

New framework targets store expansion and digital

investment

*

Franchise partners to boost e-commerce fund contribution

from

July

(Adds details on agreement in paragraphs 3-4, analyst comment

in paragraph 5)

Dec 9 (Reuters) - The UK's Domino's Pizza Group (DPG)

has reached a new five-year agreement with its franchise

partners, it said on Monday, as the fast-food chain looks to

expand its store network and increase investment in its digital

platform.

The new Profitability and Growth Framework, which the

company said had the "unanimous support" of its franchise

partners, allows for shared investment in marketing and

technology, and provides incentives for new store openings.

The London-listed pizza chain, which operates under the

umbrella of U.S.-based Domino's Pizza in the UK and

Ireland, is targeting 2 billion pounds ($2.55 billion) of sales

by 2028 from more than 1,600 stores, around 200 more than

currently.

DPG said it would directly contribute about 3 million pounds

to 4 million pounds ($3.8 million-$5.1 million) each year from

2025 under the deal, and invest an additional 4 million to 5

million pounds a year in the cost base, including in its

technology platform, cybersecurity and supply chain capacity.

"(The) incremental spend on the new franchisee framework

should calm any fears of a larger reset, particularly in the

wake of the budget, which will have had a disproportionably

large impact on the franchisees," analysts at RBC Capital said.

October's UK budget lifted employer National Insurance

contributions and the minimum wage from April, fuelling concerns

of increased taxes and business costs for companies.

The new franchise agreement will run from Jan. 3, following

the conclusion of the existing deal, said DPG, which in 2021

resolved a row with its franchisees over profit sharing after

more than two years of negotiations.

DPG said it expects to make additional investments including

for the extension of new store incentives to five years from the

current three years.

Total orders grew 5.3% and like-for-like sales rose 2.7% in

the first nine weeks of the fourth quarter.

($1 = 0.7838 pounds)