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Considering a Blaze Pizza Franchise? Don’t Overlook These 21 Important Franchise Fees

by Franchise Chatter on November 28, 2016

in Franchise Fees, Pizza Franchises



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6-20-14 BLAZE01

If you are considering a Blaze Pizza franchise, don’t get blindsided by these 21 important franchise fees (from the initial franchise fee, to the royalty fee, to 19 other fees found in Items 5 and 6 of Blaze Pizza’s 2016 FDD).

1.  Initial Franchise Fee:  $20,000 to $30,000

  • The “Initial Franchise Fee” for a Blaze Pizza Restaurant is $30,000.
  • If you are opening additional Blaze Pizza Restaurants and you or one of your managers is certified as a new restaurant opening leader (“BSCNROL” certification as described below), you will pay a reduced Initial Franchise Fee of $20,000 for each subsequent Restaurant for so long as you have a BSCNROL manager on staff throughout the opening of the Restaurant.
  • The Initial Franchise Fee is non-refundable, uniform (unless you are signing a Franchise Agreement pursuant to an earlier form of Area Development Agreement that provides for a different Initial Franchise Fee), and, unless you are signing a Franchise Agreement under an Area Development Agreement, payable when you sign each Franchise Agreement and is nonrefundable.
  • If you do not have a BSCNROL manager for the opening of your sixth or higher Restaurant, in addition to paying the full Initial Franchise Fee ($30,000) for each subsequent Restaurant, you will be required to pay a new restaurant training fee of $5,000 per Restaurant. This fee will be due prior to the start of the initial training, is uniform and nonrefundable.
  • If you lose your BSCNROL manager prior to the opening of your subsequent Restaurants, you will be required to pay $10,000 (which is the difference between the Initial Franchisee Fee and the discounted Initial Franchise Fee) prior to the initial training for the subsequent Restaurants.

2.  Development Fee:  $30,000, plus $5,000 multiplied by the number of Blaze Pizza Restaurants (excluding the first Restaurant) to be developed under the Area Development Agreement

  • The development fee (“Development Fee”) is equal to the Initial Franchise Fee for your first Franchise Agreement ($30,000) plus $5,000 multiplied by the number of Blaze Pizza Restaurants (excluding the first Restaurant) to be developed under the Area Development Agreement.
  • Blaze Pizza will credit a portion of the Development Fee against the Initial Franchise Fee ($5,000 for the second and each subsequent Franchise Agreement) until the Development Fee is exhausted.
  • If you are signing a Franchise Agreement under an Area Development Agreement, the Initial Franchise Fee is payable as follows:

First Restaurant



  • First Payment:  $30,000
  • Due Date:  When you sign the Franchise Agreement
  • Last Payment:  N/A
  • Due Date:  N/A

Restaurants Opened With a BSCNROL

  • First Payment:  $5,000
  • Due Date:  Within 30 days of acceptance of the site for the Restaurant
  • Last Payment:  $10,000
  • Due Date:  Prior to the start date for the construction of the Restaurant

Restaurants Opened Without a BSCNROL

  • First Payment:  $15,000
  • Due Date:  Within 30 days of acceptance of the site for the Restaurant
  • Last Payment:  $10,000
  • Due Date:  Prior to the start date for the construction of the Restaurant
  • The amounts listed in the table above include the Development Fee credit of $5,000 per Restaurant (excluding the first Restaurant) paid with the Development Fee. The amounts listed in this table are the additional amounts due for each additional Restaurant opened under the Area Development Agreement.
  • You will be required to sign Franchise Agreements for the additional Restaurants upon the earlier of the submittal of a site for acceptance or 180 days before the development obligation date for that Restaurant.
  • Blaze Pizza will not require a Development Fee if you are an Area Developer that has successfully completed a Development Schedule under an Area Development Agreement and wish to sign a new Area Development Agreement (“Successor Area Developers”).
  • Successor Area Developers would be required to meet Blaze Pizza’s then-current requirements for Area Developers and would sign a new Area Development Agreement but would not be required to pay a Development Fee. Successor Area Developers are still required to pay the Initial Franchise Fees for each Restaurant.
  • The Development Fee is uniformly calculated, payable when you sign your Area Development Agreement, and is nonrefundable under any circumstances, even if you fail to open any Blaze Pizza Restaurants.

3.  Continuing Royalty:  5% of Gross Sales; may vary for non-traditional locations

  • Due Date:  Due on Wednesday of each week.
  • The “Continuing Royalty” is based on “Gross Sales” during the previous week.
  • “Gross Sales” includes all revenues received or receivable by you as payment, whether in cash or for credit or barter, or other means of exchange (and, if for credit or barter, whether or not payment is received), on account of any and all goods, merchandise, services, or products sold in or from your Restaurant, or which are promoted or sold under any of the trademarks or by using the System.
  • Gross Sales excludes: (i) sales taxes, value added or other tax, excise, or duty charged to customers, based on sales at or from your Restaurant; (ii) tips, gratuities, or service charges paid directly by customers to your employees or paid to you and promptly turned over to your employees in lieu of direct tips or gratuities; and (iii) proceeds from isolated sales of equipment and trade fixtures which are not part of your products and services offered for resale at your Restaurant nor having any material effect upon the ongoing operation of your Restaurant.
  • For items sold pursuant to coupons or other discounts (which Blaze Pizza must approve), Gross Sales also excludes the amount discounted from the purchase price of such items and from sales of pre-paid gift cards and certificates, but franchisees must pay Continuing Royalties and Creative Fund contributions on sales from the redemption of gift cards and/or certificates at their Restaurant(s).
  • Payments are made via an electronic funds transfer (“EFT”).

4.  Creative Fund Contribution:  2% of weekly Gross Sales

  • Due Date:  Same as Continuing Royalty.
  • This contribution will be used for a system-wide “Creative Fund” for Blaze Pizza’s use in developing and building the Blaze Pizza brand.
  • Blaze Pizza will also use the Creative Fund to pay for the secret shopper rewards program which includes cash rewards paid to the highest scoring Restaurants which Blaze Pizza suggests gets distributed to the employees by you as bonuses.

5.  Blaze Pizza Certification Training:  no charge for initial certifications; Blaze Pizza’s then-current fees for additional certifications or re-certifications (currently $1,000 per person per week plus expenses)

  • Due Date:  Prior to beginning of training.
  • Blaze Pizza will provide 1 certification at no charge for the restaurant manager training certification, new restaurant opening certification, training facility certification, and “Operating Principal,” “Director of Operations,” and “Multi-Unit Supervisors.”
  • Blaze Pizza currently offers 4 types of Blaze Standards Certifications (“BSC”):  (1) BSC franchise training restaurant (“BSCFTR”); (2) BSC new restaurant opening leader (“BSCNROL”); (3) BSC restaurant manager (“BSCRM”); and (4) BSC training manager (“BSCTM”).
  • A BSCFTR is a Blaze Pizza Restaurant that has completed the restaurant certification process. A BSCFTR must be an operational Restaurant that has met the operational and performance requirements to obtain certification.
  • BSCNROLs are able to conduct Blaze Pizza new Restaurant opening training programs.
  • BSCTMs are able to provide Blaze Pizza initial training to Restaurant managers and assistant managers at BSCFTRs.
  • Blaze Pizza will not charge for the certification of your first BSCFTR, first BSCTM, and first BSCNROL.
  • You are required to pay Blaze Pizza’s then-current fees and expenses for additional certifications or re-certifications.
  • All certifications are subject to Blaze Pizza’s capacity and scheduling requirements.
  • You are required to have at least 1 BSCRM and, for so long as you have the obligation to open 1 or more Restaurants, 1 BSCNROL on staff when you own 5 or more Restaurants (whether directly or through your affiliate(s)).

6.  Additional Training or Assistance:  Blaze Pizza’s then-current charge (currently $500 to $1,000 per week)

  • Due Date:  Prior to beginning of training.
  • Blaze Pizza may charge you for training additional persons, replacement personnel, newly-hired personnel, refresher training courses, advanced training courses, and additional or special assistance or training you need or request.
  • The fee amount will depend on the training required and experience level of the trainer.
  • Blaze Pizza provides its initial training program (up to 2 weeks) for up to 3 management persons and one Operating Principal, and an additional third training week at no charge for your Operating Principal, Director of Operations, and Multi-Unit Supervisors.
  • There is no additional charge for this training for your first 5 Restaurants or until you have a BSCFTR and a BSCNROL certified manager, whichever comes first.

7.  Registration for Annual Convention:  between $250 and $500 per attendee

  • Due Date:  Payable 30 days after written notice to you unless otherwise specified by Blaze Pizza in writing.
  • Blaze Pizza may charge a per person attendance fee for its annual convention at which attendance is mandatory by you, or your operating principal, or other principal acceptable to it.

8.  Transfer Fee:  50% of Blaze Pizza’s then-current Initial Franchise Fee per Restaurant

  • Due Date:  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 Blaze Pizza approves otherwise, in its sole discretion, you will not be able to transfer single Restaurants or Franchise Agreements for unopened Restaurants under the Area Development Agreement.
  • Because Blaze Pizza’s primary focus is to work with Area Developers that own multiple Restaurants, it places a restriction on the number of Restaurants that you are able to transfer to preserve this model.
  • If you own (directly or indirectly through affiliates) 3 or less Restaurants, any Assignment must include the rights for all Restaurants, and if you own more than 3 Restaurants, any Assignment must include at least 50% of the rights for the Restaurants.
  • Blaze Pizza also does not allow Area Developers to transfer their rights to open Restaurants under the Area Development Agreement.

9.  Transfer to Entity:  Blaze Pizza’s actual costs

  • Due Date:  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’s actual costs.

10.  Securities Offering Fee (Area Development Franchises Only):  the greater of a: (a) non-refundable fee equal to 50% of Blaze Pizza’s then-current Initial Franchise Fee; or (b) Blaze Pizza’s reasonable costs and expenses associated with reviewing the proposed offering



  • Due Date:  Due when you ask Blaze Pizza to review a proposed securities offering.
  • If you plan to offer securities by private offering, you must obtain Blaze Pizza’s approval. You must submit all documents Blaze Pizza reasonably requests and pay this fee.

11.  Renewal Fee:  50% of Blaze Pizza’s then-current Initial Franchise Fee

  • Due Date:  Upon signing a successor Franchise Agreement.
  • Payable if you qualify to renew your Franchise Agreement and choose to enter into a successor Franchise Agreement.

12.  Relocation Fee:  50% of Blaze Pizza’s then-current Initial Franchise Fee

  • Due Date:  Upon signing a successor Franchise Agreement.
  • Payable if Blaze Pizza permits you to relocate your Blaze Pizza Restaurant.

13.  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”)

  • Due Date:  As incurred.
  • Payable if any payment due to Blaze Pizza or its affiliates is not made by the due date.
  • Interest accrues from the original due date until payment is received in full.

14.  Audit Expenses:  cost of audit and inspection, any understated amounts plus Interest, and any related accounting and legal expenses

  • Due Date:  On demand.
  • You will be required to pay this if an audit reveals that you understated your weekly Gross Sales by more than 2%.

15.  Non-Sufficient Funds Fee:  $50 per occurrence

  • Due Date:  As incurred.
  • Payable if any check or EFT payment is not successful due to insufficient funds, stop payment, or any similar event.

16.  Insurance:  reimbursement of Blaze Pizza’s costs, plus a 20% administration charge

  • Due Date:  On demand.
  • If you fail to obtain insurance, Blaze Pizza may obtain insurance for you and you must reimburse it for the cost of insurance obtained, plus 20% of the premium for an administrative cost of obtaining the insurance.

17.  Site Review and Evaluation Fee:  actual costs

  • Due Date:  As incurred.
  • Blaze Pizza typically reviews up to 3 sites for each Restaurant at no charge. It may charge you this fee, in its sole discretion, if you are required to submit more than 3 sites.

18.  Rescheduling Expenses:  actual costs

  • Due Date:  As incurred.
  • You must reimburse Blaze Pizza for costs and expenses incurred if pre-opening training and review is delayed or accelerated by more than 2 days.

19.  Supplier and Product Evaluation Fee:  costs of inspection (estimated to be approximately $100 to $500)

  • Due Date:  As incurred.
  • Blaze Pizza may charge a fee if it inspects a new product, service, or proposed supplier nominated by you.

20.  Legal Costs and Professional Fees:  will vary under circumstances

  • Due Date:  As incurred.
  • You will be required to reimburse Blaze Pizza for any legal or accounting fees that it incurs as a result of any breach or termination of your Franchise Agreement.
  • You must reimburse Blaze Pizza if it is required to incur any expenses in enforcing its rights against you under the Franchise Agreement.

21.  Indemnification:  will vary under circumstances

  • Due Date:  As incurred.
  • You must indemnify and reimburse Blaze Pizza for any expenses or losses that it or its representatives incur related in any way to your Blaze Pizza Restaurant or Franchise.


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