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Earnings Claims of Top Franchises Revealed

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Franchise Costs: Detailed Estimates of Blaze Pizza Franchise Costs (2016 FDD)

by Franchise Chatter on May 15, 2014

in Franchise Costs, Pizza Franchises

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Blaze PizzaThis post was updated on July 17, 2016 to reflect information from Blaze Pizza’s 2016 FDD (Item 7).

Detailed Estimates of Blaze Pizza Franchise Costs Based on Item 7 (Estimated Initial Investment) of Blaze Pizza’s 2016 Franchise Disclosure Document

  • The chart below describes the estimated initial investment for a single Blaze Pizza Restaurant.
  • In addition to Blaze Pizza’s experience, the experience of its officers, and its current requirements for Blaze Pizza Franchises, these estimates are based on the historical costs to open Blaze Restaurants during 2015, which, excluding food court locations, averaged approximately $715,000 per Restaurant in 2015.

1.  Initial Franchise Fee:  $30,000

  • The franchise fee is paid upon execution of the Franchise Agreement and is non-refundable.

2.  Architect/Engineer:  $15,000 to $30,000

  • You must retain one of Blaze Pizza’s designated architects to create your preliminary Restaurant plan at your cost (approximately $900 to $1,500). You may choose to retain one of Blaze Pizza’s designated architects or another architect the franchisor approves, to prepare your construction documents.
  • Upon completion of your construction documents, if you choose not to use Blaze Pizza’s designated architects, the franchisor will require you to employ its designated architect to review and approve the construction documents for a fee of $600 to $1,000.
  • Blaze Pizza’s own designer will review the construction documents too and provide input on the placement of trade dress elements, general restaurant layout, and other input as deemed appropriate, at no charge to you.

3.  Project Coordinator:  $0 to $12,000

4.  Permits:  $1,000 to $13,000

5.  Leasehold Improvements:  $158,000 to $360,000

  • The typical Blaze Pizza Restaurant will be approximately 2,200 to 3,000 square feet (or 800 to 1,000 square feet if located in a food court).
  • The cost of improvements will vary depending on a number of factors, including:  (i) size and condition of the space; (ii) pre-construction costs; and (iii) cost of materials and labor. This estimate does not include any construction allowances or tenant improvement credits that may be offered by your landlord.
  • The Restaurants will most likely be located in retail strip malls, dense urban areas, regional shopping centers, and entertainment and travel centers.

6.  Equipment:  $100,000 to $185,000

7.  Furniture and Fixtures:  $10,000 to $50,000

8.  Smallwares:  $10,000 to $15,000

9.  Signage and Graphics:  $3,000 to $25,000

10.  Grand Opening Kit, Menu Boards:  $3,000 to $5,000

11.  Computer Equipment and Information/POS Systems:  $15,000

  • This estimate includes the computer equipment, point of sale equipment, software and installation, and hosting services for your Blaze Pizza Restaurant.

12.  Uniforms:  $2,000 to $3,000

13.  Initial Inventory and Supplies:  $7,000 to $15,000

14.  Pre-Opening Advertising:  $3,000 to $15,000

  • The pre-opening advertising is in addition to the free pizzas given away at the grand opening of the Restaurant.

15.  Grand Opening Free Pizzas:  $3,000 to $5,000

16.  Insurance Deposits:  $500 to $1,000

  • This estimate is for the deposit for your insurance policies.

17.  First Month’s Rent/Security Deposit:  $7,000 to $23,000

18.  Initial Training:  $5,000 to $12,000

  • These figures include your costs of travel and expenses during your initial two week training program.

19.  Liquor Licensing:  $0 to $10,000

  • The cost to obtain a license to sell beer and wine varies greatly depending on the licensing authority and the local resale market.
  • In municipalities that use a quota-based system with no available licenses, the cost to acquire one from an existing licensee can be substantially higher. If so, Blaze Pizza will not require you to sell beer and wine until you are able to obtain a license from the municipality.
  • In municipalities that are not quota based, the cost is usually limited to filing fees, plus fees for attorney’s services and other service providers.

20.  Miscellaneous Opening Costs:  $1,000 to $20,000

21.  Professional Fees:  $1,000 to $5,000

22.  Additional Funds – 3 Months:  $20,000 to $90,000

  • The estimate of additional funds for the initial phase of your business is based on your staff salaries and miscellaneous start-up costs through the first 3 months of operation. The estimate of additional funds does not include an owner’s salary or draw.

23.  Total:  $394,500 to $939,000

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