How Much Does it Cost to Open a Blaze Pizza Franchise?
The estimated initial investment of a Blaze Pizza franchise is $394,000 to $902,000. Below you will find a breakdown of the initial investment costs associated with buying a Blaze Pizza Franchise.
This Pie chart shows a breakdown of the initial investment required to start a Blaze Pizza Franchise.
The amount displayed for each investment category is the maximum amount. See the Estimated Initial Investment Table below for the low end of each category.
Estimated Initial Investment of Blaze Pizza Franchise Ownership
|
Category of Investment
|
Amount |
Method of Payment
|
When Due
|
To Whom Paid
|
|
| Low | High | ||||
Initial Franchise Fee |
$30,000 | $30,000 | Lump Sum | When you sign your Franchise Agreement | Blaze Pizza, LLC |
Development Fee |
$0 | $45,000 | Lump Sum | When you sign your Area Development Agreement | Blaze Pizza, LLC |
Architect / Engineer |
$15,000 | $30,000 | As incurred | As invoiced | Approved Suppliers |
Project Coordinator |
$0 | $6,000 | As incurred | As invoiced | Approved Suppliers |
Permits |
$1,000 | $10,000 | As incurred | As invoiced | Approved Suppliers and Government Agencies |
Leasehold Improvements |
$158,000 | $325,000 | As incurred | As invoiced | Approved Suppliers |
Equipment |
$100,000 | $175,000 | As incurred | As invoiced | Approved Suppliers |
Furniture and Fixtures |
$10,000 | $30,000 | As incurred | As invoiced | Approved Suppliers |
Smallwares |
$10,000 | $15,000 | As incurred | As invoiced | Approved Suppliers |
Signage and Graphics |
$3,000 | $20,000 | As incurred | As invoiced | Approved Suppliers |
Grand Opening Kit, Menu Boards |
$3,000 | $5,000 | As incurred | As invoiced | Approved Suppliers |
Computer Equipment & Information / POS Systems |
$15,000 | $20,000 | As incurred | As invoiced | Approved Suppliers |
Uniforms |
$2,000 | $5,000 | As incurred | As invoiced | Approved Suppliers |
Initial Inventory and Supplies |
$7,000 | $15,000 | As incurred | As invoiced | Approved Suppliers |
Pre-Opening Advertising |
$3,000 | $15,000 | As incurred | As invoiced | Approved Suppliers |
Grand Opening Free Pizzas |
$3,000 | $5,000 | As incurred | As incurred | Approved Suppliers |
Insurance Deposits |
$500 | $1,000 | As incurred | As invoiced | Insurance Carrier |
First Month’s Rent/ Security Deposit |
$7,000 | $23,000 | As incurred | As invoiced | Landlord |
Initial Training |
$5,000 | $10,000 | As incurred | As invoiced | Us or Approved Suppliers |
Liquor Licensing |
$0 | $12,000 | As incurred | As invoiced | Approved Suppliers and Government Agencies |
Miscellaneous Opening Costs |
$500 | $10,000 | As incurred | As invoiced | Approved Suppliers |
Professional Fees |
$1,000 | $5,000 | As incurred | As incurred | Your Financial And Legal Advisors |
Additional Funds– 3 Months |
$20,000 | $90,000 | As incurred | As invoiced | Suppliers and Employees |
| Total | $394,000 | $902,000 | |||
| Area Development Franchise | If you purchase the rights to developer multiple Blaze Pizza Restaurants under an Area Development Agreement, you will incur all costs listed above for each Blaze Pizza Restaurants in addition to the Development Fee (which will be credited towards the Initial Franchise Fees | ||||
What other fees do Blaze Pizza franchisees pay?
Yes. There are several other fees that must be paid to start a Blaze Pizza franchise business. You can find a breakdown of the other fees associated with buying a Blaze Pizza franchise below.
Other Blaze Pizza Fees
| Type of Fee | Amount | Due Date | Remarks |
Continuing Royalty |
5% of Gross Sales; may vary for non-traditional locations | Due on Wednesday of each week | The “Continuing Royalty” is based on “GrossSales” during the previous week. Payments are made via an electronic funds transfer (“EFT”). |
Creative Fund Contribution |
2% of weekly Gross Sales | Same as Continuing Royalty | This contribution will be used for a system- wide “Creative Fund” for Blaze Pizza, LLC’s use in developing and building the Blaze Pizza brand. The Franchisor will also use the Creative Fund to pay for the secret shopper rewards program which includes cash rewards paid to the highest scoring Restaurants to be given to your employees by you as bonuses. |
Blaze Pizza Certification Training |
No charge for initial certifications; Blaze Pizza, LLC’s then current fees for additional certifications or re- certifications (currently $1,000 per person per week plus expenses) |
Prior to beginning of training | The Franchisor will provide one certification at no charge for the restaurant manager training certification, new restaurant opening certification and training facility certification. See Note 3 for more information. |
Training of Additional or Replacement Personnel |
Our then-current charge (currently $1,000 per person) | Prior to beginning of training | The Franchisor provide Blaze Pizza, LLC’s initial training program at no charge for up to three (3) management persons and one operating principal for your first five Restaurants or until you have a “Certified Training Facility” and a “CRTManager” (as those terms are defined below), whichever comes first. You will be required to pay Blaze Pizza, LLC’s then –current fees for training additional persons. |
Registration for Annual Convention |
Between $250 and $500 per attendee | Payable 30 days after written notice to you unless otherwise specified by the franchisor in writing | The Franchisor may charge a per person attendance fee for Blaze Pizza, LLC’s annual convention at which attendance is mandatory by you, or your operating principal or other principal acceptable to us. |
Transfer Fee |
50% of Blaze Pizza, LLC’s then-current initial franchise fee per Restaurant | At the time you request approval of a transfer | Payable when you transfer your Franchise or upon any “Assignment” as defined in the Franchise Agreement. Unless The Franchisor approve otherwise, in Blaze Pizza, LLC’s sole discretion, you will not be able to transfer single Restaurants as explained in Note 4 below. |
Transfer to Entity |
Our actual costs | Upon demand | If you are transferring the Franchise Agreement to an entity that you control, you will not be required to pay a transfer fee but you must pay Blaze Pizza, LLC’s actual costs. |
Securities Offering Fee (Area Development Franchises Only) |
The greater of a: (a) non- refundable fee equal to 50% of Blaze Pizza, LLC’s then-current initial franchise fee; or (b) Blaze Pizza, LLC’s reasonable costs and expenses associated with reviewing the proposed offering |
Due when you ask the franchisor to review a proposed securities offering | If you plan to offer securities by private offering, you must obtain Blaze Pizza, LLC’s approval. You must submit all documents The Franchisor reasonably request and pay this fee. |
Renewal Fee |
50% of Blaze Pizza, LLC’s then-current initial franchise fee | Upon signing a successor franchise agreement | Payable if you qualify to renew your Franchise Agreement and choose to enter into a successor franchise agreement. |
Relocation Fee |
50% of Blaze Pizza, LLC’s then-current initial franchise fee | Upon signing a successor franchise agreement | Payable if The Franchisor permit you to relocate your Blaze Pizza Restaurant. |
Late Fee |
$100 per occurrence, plus lesser of the daily equivalent of 12% per year simple interest or the highest rate allowed by law (“Interest”) | As incurred | Payable if any payment due Blaze Pizza, LLC or its affiliates is not made by the due date. Interest accrues from the original due date until payment is received in full. |
Audit Expenses |
Cost of audit and inspection, any understated amounts plus Interest, and any related accounting and legal expenses | On demand | You will be required to pay this if an audit reveals that you understated your weekly Gross Sales by more than 2%. |
Non-Sufficient Funds Fee |
$50 per occurrence | As incurred | Payable if any check or EFT payment is not successful due to insufficient funds, stop payment, or any similar event. |
Insurance |
Reimbursement of Blaze Pizza, LLC’s costs plus a 20% administration charge | On demand | If you fail to obtain insurance, The Franchisor may obtain insurance for you and you must reimburse the franchisor for the cost of insurance obtained plus 20% of the premium for an administrative cost of obtaining the insurance. |
Site Review and Evaluation Fee |
Actual Costs | As incurred | The Franchisor typically review up to three sites for each Restaurant at no charge. The Franchisor may charge you this fee, in the sole discretion of Blaze Pizza, LLC, if you are required to submit more than three sites. |
Rescheduling Expenses |
Actual Costs | As incurred | You must reimburse Blaze Pizza, LLC for costs and expenses incurred if pre-opening training and review is delayed or accelerated by more than 2 days. |
Supplier and Product Evaluation Fee |
Costs of inspection (estimated to be approximately $100 to $500) |
As incurred | The Franchisor may charge a fee if The Franchisor inspect a new product, service or proposed supplier nominated by you. |
Legal Costs and Professional Fees |
Will vary under circumstances | As incurred | You will be required to reimburse the franchisor for any legal or accounting fees that The Franchisor incur as a result of any breach or termination of your Franchise Agreement. You must reimburse Blaze Pizza, LLC if The Franchisor are required to incur any expenses in enforcing Blaze Pizza’s rights against you under the Franchise Agreement. |
Indemnification |
Will vary under circumstances | As incurred | You must indemnify and reimburse Blaze Pizza, LLC for any expenses or losses that The Franchisor or its representatives incur related in any way to your Blaze Pizza Restaurant or Franchise. |
This data was taken from the Blaze Pizza FDD and is included in our comprehensive pre-investment due diligence report for prospective Blaze Pizza franchisees. Access the full report here.
