Blaze Pizza Franchise Costs: Estimated Initial Investment (Item 7, 2022 FDD)
- These estimated initial expenses are Blaze Pizza’s best estimate of the costs you may incur in establishing and operating your Restaurant. Blaze Pizza does not offer direct or indirect financing for these items.
- The estimated initial investment for Non-Traditional Restaurants and Restaurants located in food courts, while still within the estimated range set forth above, may be lower than a traditional Restaurant, and these figures represent the approximate cost for purchasing, installing, and equipping the Restaurant at a traditional location.
- Because they are typically located in a host facility, Non-Traditional Restaurants and Restaurants located in food courts may require fewer leasehold improvements and equipment expenditures than traditional Restaurants. Opening inventory expenditures may be lower as well, but the initial investment in Non-Traditional Restaurants and Restaurants located in food courts depends on the type, location, and configuration of the Restaurant and of the host facility.
- 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 Blaze Pizza or its affiliates are non-refundable.
1. Initial Franchise Fee: $30,000
- The initial franchise fee is $30,000, paid upon execution of the Franchise Agreement, and is non-refundable.
2. Architect/Engineer: $15,000 to $27,500
- You must retain one of Blaze Pizza’s designated architects to create your preliminary floorplan at your cost (approximately $900 to $1,500), or alternatively, one of Blaze Pizza’s design managers will create your preliminary floorplan at no cost to you. You may choose to retain either one of Blaze Pizza’s designated architects or another architect Blaze Pizza approves to prepare your construction documents.
- Upon completion of your construction documents, if you choose not to use Blaze Pizza’s designated architects, Blaze Pizza 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 design managers 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 and Liquor Licensing: $5,000 to $25,000
- 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.
4. Leasehold Improvements: $275,000 to $475,000
- Restaurants will most likely be located in retail strip malls, dense urban areas, regional shopping centers, and entertainment and travel centers.
- The typical Restaurant will be approximately 2,200 to 3,000 square feet.
- A typical Non-Traditional Restaurant or a Restaurant located in a food court will be approximately 1,000 to 1,200 square feet.
- 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) the cost of materials and labor.
- This estimate does not include any construction allowances or tenant improvement credits that may be offered by your landlord. If your landlord provides a tenant improvement allowance and you do not experience significant cost over-runs, delays, etc., your actual leasehold improvement costs might be at the lower end of the estimate (although your landlord might incorporate the amount of the tenant improvement allowances into your rent).
5. Furniture, Fixtures, Equipment, and Decor: $185,000 to $300,000
- This is Blaze Pizza’s estimate for the necessary furniture, fixtures, equipment, and decor to equip the Restaurant, which includes millwork, lighting, music, furniture, and kitchen equipment.
6. Signage and Graphics: $20,000 to $34,500
7. Grand Opening Kit, Menu Boards: $4,900 to $5,500
- This is Blaze Pizza’s estimate for the required grand opening kit and menu boards you must purchase for the Restaurant.
- If you purchase a franchise for a Non-Traditional Restaurant, these costs are generally less, though that depends on the venue, size of space, and menu limitations in which the Non-Traditional Restaurant is located.
8. Computer/Information Systems: $22,000 to $35,000
- This estimate includes the cost to (i) purchase the Computer System, (ii) purchase and install the Online Ordering System, (iii) purchase two EMV terminals and pay for the related EMV activation fees and software lease payments for three months, (iv) purchase two Training Tablets and pay for the related Training Tablet training software license fees for three months and MDM license for the first 3 years, and (v) purchase one OLO Tablet.
- The low end of the range reflects an estimate of the costs for computer/information systems for a Non-Traditional Restaurant, since Blaze Pizza has fewer computer/information systems requirements for Non-Traditional Restaurants.
9. Uniforms, Initial Inventory, and Smallware: $24,000 to $41,500
10. Grand Opening Advertising Program: $10,000 to $30,000
- The amounts you must spend on your grand opening advertising program are in addition to the costs of the free pizzas you must give away at the grand opening of a Restaurant.
- You must spend a minimum of $10,000 in connection with your grand opening advertising program.
- Blaze Pizza may require you to deposit with it into an escrow or similar account the full amount of your total budget that it approves for use in connection with conducting the grand opening advertising program prior to your use of the funds.
11. Grand Opening Free Pizzas: $0 to $6,000
- The estimated cost of free pizzas given away at a Restaurant ranges from $0 to $6,000. You are not required to give away free pizzas at the grand opening of a Non-Traditional Restaurant.
12. Insurance Deposits: $500 to $5,000
- This estimate is for the deposit for your insurance policies.
13. First Month’s Rent/Security Deposit: $3,000 to $24,000
14. Initial Training Expenses: $5,000 to $7,500
- These figures include your costs of travel and expenses during your initial training program.
15. Professional Fees: $5,000 to $15,000
16. 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 startup costs and operating expenses through the first 3 months of operation. The estimate of additional funds does not include an owner’s salary or draw.
- The additional funds required will vary by your area; how much you follow Blaze Pizza’s methods and procedures; your management skills, experience, and business acumen; the relative effectiveness of your staff; local economic conditions; the local market for your products and services; the prevailing wage rate; competition; and the sales level reached during the initial period.
- Blaze Pizza has relied on its affiliates’ and executives’ experience in operating and franchising Restaurants in formulating this estimate.
17. Total: $624,400 to $1,106,500