Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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Franchise Costs: Detailed Estimates of Blaze Pizza Franchise Costs (2017 FDD)

by Franchise Chatter on May 15, 2014

in Franchise Costs, Pizza Franchises

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Blaze Pizza

This post was updated on July 31, 2017 to reflect information from Blaze Pizza’s 2017 FDD (Item 7).

Detailed Estimates of Blaze Pizza Franchise Costs Based on Item 7 (Estimated Initial Investment) of Blaze Pizza’s 2017 Franchise Disclosure Document

  • The chart below describes the estimated initial investment for a single Blaze Pizza Restaurant.
  • These estimated initial expenses are Blaze Pizza’s best estimate of the costs you may incur in establishing and operating your Blaze Pizza Franchise. Blaze Pizza does not offer direct or indirect financing for these items.
  • 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 2016, which, excluding food court locations, averaged approximately $750,000 per Restaurant in 2016.
  • The factors underlying Blaze Pizza’s estimates may vary depending on several variables, and the actual investment you make in developing and opening your Franchise may be greater or less than the estimates given depending upon the location of your Franchise, and current relevant market conditions.
  • Your costs will also depend on factors such as how well you follow Blaze Pizza’s methods and procedures; your management skills; your business experience and capabilities; local economic conditions; the local market for Blaze Pizza’s products and services; the prevailing wage rates; competition; and sales levels reached during your initial phase of business operations.
  • All expenses payable to third parties are non-refundable, except as you may arrange for utility deposits and other payments.

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.  Permits:  $1,000 to $13,000

4.  Leasehold Improvements:  $158,000 to $393,000

  • 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.

5.  Equipment:  $100,000 to $168,000

6.  Furniture and Fixtures:  $10,000 to $83,000

7.  Smallwares:  $10,000 to $25,000

8.  Signage and Graphics:  $3,000 to $47,000

9.  Grand Opening Kit, Menu Boards:  $3,000 to $8,000

10.  Computer Equipment and Information/POS Systems:  $18,000 to $20,500

  • This estimate includes the computer equipment, point of sale equipment, software and installation, and hosting services for your Blaze Pizza Restaurant.
  • In addition, this estimate includes the purchase and activation fees for 2 EMV terminals as well as 3 months of software lease payments.
  • This estimate also includes the setup fee and costs for 2 Training Tablets for 3 months.

11.  Uniforms:  $2,000 to $5,000

12.  Initial Inventory and Supplies:  $7,000 to $19,000

13.  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.

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

15.  Insurance Deposits:  $500 to $5,000

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

16.  First Month’s Rent/Security Deposit:  $7,000 to $33,000

17.  Initial Training:  $5,000 to $15,000

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

18.  Liquor Licensing:  $0 to $5,000

  • 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.

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

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

21.  Additional Funds – 3 Months:  $20,000 to $45,000

  • 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.

22.  Total:  $397,500 to $989,500

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