In this FDD Talk post, you’ll learn the following:

• Section I – Estimated initial investment (franchise costs) for a Blaze Pizza franchise, based on Item 7 of the company’s 2022 FDD

• Section II – Initial franchise fee, royalty fee, and marketing fee for a Blaze Pizza franchise, based on Items 5 and 6 of the company’s 2022 FDD

• Section III – Number of franchised and company-owned Blaze Pizza outlets at the start of the year and the end of the year for 2019, 2020, and 2021, based on Item 20 of the company’s 2022 FDD

• Section IV – Background information on the Blaze Pizza franchise opportunity, including relevant news updates

• Section V – Presentation and analysis of Blaze Pizza’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2022 FDD, including information on the:

• 2021 average, median, high, and low gross sales for the 252 franchised Blaze Pizza restaurants that were operating from Traditional Locations, and the 17 franchised Blaze Pizza restaurants that were operating from Mall Storefront Locations for at least 12 months as of the end of the 2021 calendar year

• 2021 average, median, high, and low gross sales for the 4 corporate Blaze Pizza restaurants that were operating from Traditional Locations in California, the 2 corporate Blaze Pizza restaurants that were operating from Mall Storefront Locations in California, and the 6 corporate Blaze Pizza restaurants that were operating from Traditional Locations in Oklahoma and Arkansas for at least 12 months as of the end of the 2021 calendar year

• 2021 average, median, high, and low cost of goods sold for the 6 corporate Blaze Pizza restaurants that were operating in California, and the 6 corporate Blaze Pizza restaurants that were operating in Oklahoma and Arkansas for at least 12 months as of the end of the 2021 calendar year

• Section VI – Key ratios, comparables, computations, and analyses for the Blaze Pizza franchise opportunity (exclusive content for Platinum subscribers)

Section I – Blaze Pizza Franchise Costs

• Blaze Pizza franchise costs, based on Item 7 of the company’s 2022 FDD:

• Initial Franchise Fee:  $30,000
• Architect/Engineer:  $15,000 to $27,500
• Permits and Liquor Licensing:  $5,000 to $25,000
• Leasehold Improvements:  $275,000 to $475,000
• Furniture, Fixtures, Equipment, and Decor:  $185,000 to $300,000
• Signage and Graphics:  $20,000 to $34,500
• Grand Opening Kit, Menu Boards:  $4,900 to $5,500
• Computer/Information Systems:  $22,000 to $35,000
• Uniforms, Initial Inventory, and Smallware:  $24,000 to $41,500
• Grand Opening Advertising Program:  $10,000 to $30,000
• Grand Opening Free Pizzas:  $0 to $6,000
• Insurance Deposits:  $500 to $5,000
• First Month’s Rent/Security Deposit:  $3,000 to $24,000
• Initial Training Expenses:  $5,000 to $7,500
• Professional Fees:  $5,000 to $15,000
• Additional Funds – 3 Months:  $20,000 to $45,000
• Total:  $624,400 to $1,106,500

Section II – Blaze Pizza’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Blaze Pizza’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2022 FDD:

• Initial Franchise Fee:  $30,000
• Continuing Royalty:  5% of Gross Sales
• Creative Fund Contribution:  then-current fee (currently, 2% of weekly Gross Sales)
• Local Advertising Requirement:  2% of Gross Sales of the immediately preceding 6-month period

Section III – Number of Franchised and Company-Owned Blaze Pizza Outlets

Franchised

2019

• Outlets at the Start of the Year:  289
• Outlets at the End of the Year:  306
• Net Change:  +17

2020

• Outlets at the Start of the Year:  306
• Outlets at the End of the Year:  296
• Net Change:  -10

2021

• Outlets at the Start of the Year:  296
• Outlets at the End of the Year:  301
• Net Change:  +5

Company-Owned

2019

• Outlets at the Start of the Year:  7
• Outlets at the End of the Year:  7
• Net Change:  0

2020

• Outlets at the Start of the Year:  7
• Outlets at the End of the Year:  13
• Net Change:  +6

2021

• Outlets at the Start of the Year:  13
• Outlets at the End of the Year:  13
• Net Change:  0

Section IV – Background Information on the Blaze Pizza Franchise

18 Things You Need to Know About the Blaze Pizza Franchise

Appoints New Senior Vice President of Development

1.  At the beginning of June 2021, Blaze Pizza announced that Johnny Jones has joined the executive leadership team as senior vice president of development. Jones has spent more than 20 years in the franchise industry leading real estate development, market planning, property negotiations, and asset management for nationally recognized restaurant brands. In his new role with Blaze Pizza, Jones will utilize his depth of experience to support the brand’s ambitious growth plans for 2021 and beyond.

2.  Mandy Shaw, CEO and president of Blaze Pizza, said, “We are excited to welcome Johnny as the newest member of our Blaze family. His proficiency in real estate development coupled with a deep understanding of the restaurant industry will undoubtedly fuel our ongoing efforts to rapidly expand Blaze’s footprint across the country. Blaze has cultivated an exceptional leadership team led by industry veterans, and we have no doubt that adding Johnny’s expertise will be a tremendous asset as we accelerate our unit growth and welcome new franchisees to the brand.”

3.  Prior to joining Blaze, Jones served as vice president of real estate and development for Sonic Drive-In and Inspire Brands, a top-tier holding company for popular franchise brands such as Sonic Drive-In, Jimmy John’s, and Buffalo Wild Wings, among others. In this previous position, Jones led all aspects of real estate development and construction management, including executing profitable franchise development deals and growth strategies, and real estate negotiations.

4.  Under his leadership, the fast-food restaurant chain grew to over 1,000 units. Additionally, Jones held positions at Sonic Drive-In as senior director of real estate and development and manager of graphic information systems, working closely with the real estate team to identify potential restaurant locations, strategic placements, and optimize market penetration.

5.  Jones said, “In the restaurant industry, you rarely come across a brand like Blaze Pizza that appeals to the masses, delivers on their promise to only use quality food products, and provides a selection of menu items that will appease the array of dietary preferences we see in today’s world. When I had the opportunity to join the team in charge of growing this trailblazing concept, it was an easy yes for me. After fourteen months of navigating a pandemic, now’s a great time to accelerate the momentum Blaze has built and expand the brand’s footprint in markets nationwide.”

Partners with Primal Kitchen to Launch Limited-Time Ranch Dressing

6.  At the beginning of January 2022, Blaze Pizza and Primal Kitchen announced a new, limited-time partnership. Starting January 5 (National Keto Day) and extending through January 16, Primal Kitchen Ranch Dressing was available as a finishing drizzle at select Blaze Pizza locations nationwide. Primal Kitchen is known for their delicious, no-dairy condiments, sauces, dressings, and toppings, with Ranch Dressing made with Avocado Oil being a top seller. By partnering with Blaze Pizza, this collaboration allowed guests to continue enjoying their favorite pizza build with better-for-you options to stay true to their eating habits.

7.  Mandy Shaw, Blaze Pizza’s chief executive officer, said, “At Blaze Pizza, we pride ourselves on having ‘endless pizzabilities’ offering traditional pizza with better-for-you ingredients or specialized pizzas for keto, vegan, vegetarian, gluten-free, and dairy-free diets. We are thrilled to offer our guests the Ranch Dressing drizzle from Primal Kitchen, a brand known for providing real ingredient staples without compromising taste.”

8.  This year, Blaze Pizza is celebrating their 10th anniversary as the destination for made-to-order pizza. With over 340 restaurants across 38 states and six countries, Blaze Pizza’s ever-expanding franchises continue to revolutionize the fast-casual dining experience through product innovation and unique partnerships like this.

9.  Morgan Zanotti, co-founder and president of Primal Kitchen, added, “Primal Kitchen encourages our customers to ask more of their food and keep the classics with elevated, real ingredients and delicious taste. That’s why Primal Kitchen is thrilled to tap into Blaze Pizza customers who demand the same experience. With five crusts and over 60 toppings that can be mixed and matched with our Ranch Dressing, this is an exciting opportunity to introduce the product in a unique way, particularly with the added backdrop of National Keto Day and the new year.”

Accelerates Growth in Southern California and Alaska

10.  At the end of July 2021, Blaze Pizza announced that it had signed two new multi-unit franchise agreements, further fueling the thriving brand’s continued nationwide growth efforts. As part of these deal signings, Blaze is expanding its strong presence in Southern California with two restaurants under development and slated to open in Indio and Colton, new markets for the brand in its home state. Additionally, the brand has also signed an agreement to open its first locations in Alaska, with four restaurants in the pipeline to be developed across the state, with an initial focus on Fairbanks.

11.  Blaze Pizza’s new franchisees Greg and Catharine Persinger will be the owners and operators of the brand’s Alaskan locations, spearheading its debut in the state. The Persingers are experienced multi-brand developers, and in addition to their new agreement with Blaze, the couple also owns successful Firehouse Subs and Cold Stone Creamery franchises. This husband-and-wife team plans to open four new Blaze Pizza locations throughout the state, with the first slated to open in Fairbanks.

12.  Leading Blaze Pizza’s development in Southern California are brother-and-sister duo David and Aman Chandi. The siblings come from a family with strong roots in multi-unit franchise operations and real estate development, currently operating several Del Taco and Subway franchise locations in the Golden State. Leveraging their extensive experience in the restaurant and franchise industries, Aman and David plan to develop two new Blaze locations in Indio and Colton, California – both of which will open in shopping plazas owned by the Chandi family.

13.  Aman Chandi said, “For more than ten years, we’ve worked closely with our family to learn about the franchise industry and have seen firsthand the importance of investing in a concept with proven viability. Blaze Pizza was a pioneer in the made-to-order restaurant segment, and once we were introduced to the exceptional team behind the brand’s unparalleled support system and product excellence, we immediately jumped on the opportunity to add it to our portfolio. Blaze Pizza has captured a passionate following from consumers nationwide; in fact, we came to love the brand first as customers, and are thrilled to have the chance to share this concept’s one-of-a-kind dining experience with our community.”

14.  To support these development efforts, Blaze is continuing to invest in a strong franchise executive team, recently appointing Andrew Verhagen as franchise sales manager and John Grega as director of construction. Together, the new team members bring extensive backgrounds in franchising and have worked with nationally-recognized food brands, including Bojangles and Inspire Brands.

15.  Ed Yancey, senior vice president of franchise development for Blaze Pizza, said, “At Blaze Pizza, we are proud to be true partners to our franchisees and have continually invested in our leadership team to ensure that we have the best of the best at the helm of this growing brand. Andrew and John are the latest industry veterans to join our team, and we have no doubt that their wealth of knowledge will be an invaluable resource for both new and existing restaurant operators in our system.”

Company History

16.  Blaze Pizza was founded in 2011 by Rick and Elise Wetzel, the founders of Wetzel’s Pretzels, in Pasadena, California. The Wetzels wanted to open a pizza concept that was similar to Chipotle’s made-to-order concept. They also wanted the pizzas to cook quickly and they came up with a “Fast Fire’d” method that uses a high-temperature open-flame oven with an average cook time of 3 minutes.

17.  The first Blaze location was a success and the Wetzels began franchising right away. By 2014, there were more than 50 Blaze Pizza locations in operation. In 2015, Blaze Pizza opened its first international store in Canada. Over the past few years, Blaze Pizza has continued to expand around the world and there are locations across the U.S., Canada, Kuwait, Saudi Arabia, Bahrain, and the United Arab Emirates.

Entrepreneur’s Franchise 500

18.  Blaze Pizza ranked No. 264 on Entrepreneur’s 2022 Franchise 500 list.

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Blaze Pizza Franchise (Item 19, 2022 FDD)

• At the 2021 calendar year end, Blaze Pizza had a total of 311 Restaurants that were open and operating for at least 12 months: 299 franchised Restaurants and 12 corporate Restaurants.

• Parts 1 and 2 below provide 2021 Gross Sales data for:

• 269 franchised Restaurants open as of the Issuance Date of the Disclosure Document operating from Traditional Locations and Mall Storefront Locations (the “2021 Franchised Restaurants”), and

• 12 corporate Restaurants open as of the Issuance Date of the Disclosure Document operating from Traditional Locations and Mall Storefront Locations (the “2021 Corporate Restaurants”).

• Part 3 below provides Costs of Good Sold data for the 2021 Corporate Restaurants.

Part 1 – Franchised Restaurants’ 2021 Average Gross Sales

• Part 1 reports the average, median, high, and low Gross Sales for 2021 Franchised Restaurants.

• The information is divided into two categories. Part 1A provides data for the 252 2021 Franchised Restaurants operating from Traditional Locations, and Part 1B provides data for the 17 2021 Franchised Restaurants operating from Mall Storefront Locations.

A. Traditional Location Franchised Restaurants

• Number of Restaurants:  252
• Average Gross Sales:  $1,158,073
• Number and Percentage of Restaurants That Attained or Surpassed the Average:  108 (43%)
• Median Gross Sales:  $1,102,616
• High Gross Sales:  $2,853,608
• Low Gross Sales:  $393,695

B. Mall Storefront Franchised Restaurants

• Number of Restaurants:  17
• Average Gross Sales:  $1,029,360
• Number and Percentage of Restaurants That Attained or Surpassed the Average:  6 (35%)
• Median Gross Sales:  $1,004,756
• High Gross Sales:  $1,645,877
• Low Gross Sales:  $488,986

Part 2 – Corporate Restaurants’ 2021 Average Gross Sales

• Part 2 reports the average, median, high, and low Gross Sales for the 2021 Corporate Restaurants.

• The information is divided into three categories based on region and store type: Part 2A provides this data for the 4 2021 Corporate Restaurants operating from Traditional Locations in California. Part 2B provides this data for the 2 2021 Corporate Restaurants operating from Mall Storefront Locations in California. Part 2C provides this data for the 6 2021 Corporate Restaurants operating from Traditional Locations in Oklahoma and Arkansas.

A. Traditional Location Corporate Restaurants in California

• Number of Restaurants:  4
• Average Gross Sales:  $1,579,855
• Number and Percentage of Restaurants That Attained or Surpassed the Average:  2 (50%)
• Median Gross Sales:  $1,465,854
• High Gross Sales:  $2,260,618
• Low Gross Sales:  $1,127,093

B. Mall Storefront Corporate Restaurants in California

• Number of Restaurants:  2
• Average Gross Sales:  $1,410,236
• Number and Percentage of Restaurants That Attained or Surpassed the Average:  1 (50%)
• Median Gross Sales:  $1,410,236
• High Gross Sales:  $1,601,232
• Low Gross Sales:  $1,219,240

C. Traditional Location Corporate Restaurants in Oklahoma and Arkansas

• Number of Restaurants:  6
• Average Gross Sales:  $735,579
• Number and Percentage of Restaurants That Attained or Surpassed the Average:  1 (17%)
• Median Gross Sales:  $697,101
• High Gross Sales:  $1,103,850
• Low Gross Sales:  $558,531

Part 3 – Corporate Restaurants’ 2021 Cost of Goods Sold

• Part 3 reports the average, median, high, and low Cost of Goods Sold (COGS), as a percentage of Gross Sales, for 2021 Corporate Restaurants.

• The information is divided into two regions. Part 3A provides data for the 6 2021 Corporate Restaurants operating in California, and Part 3B provides data for the 6 2021 Corporate Restaurants operating in Oklahoma and Arkansas.

A. Corporate Restaurants in California

• Number of Restaurants:  6
• Average Cost of Goods Sold:  24.5%
• Number and Percentage of Restaurants That Attained or Surpassed the Average:  3 (50%)
• Median Cost of Goods Sold:  24.4%
• High Cost of Goods Sold:  25.9%
• Low Cost of Goods Sold:  22.8%

B. Corporate Restaurants in Oklahoma and Arkansas

• Number of Restaurants:  6
• Average Cost of Goods Sold:  27.6%
• Number and Percentage of Restaurants That Attained or Surpassed the Average:  4 (67%)
• Median Cost of Goods Sold:  28.6%
• High Cost of Goods Sold:  30.7%
• Low Cost of Goods Sold:  24.3%

• Blaze Pizza does not present Costs of Goods Sold information for Franchised Restaurants since it does not have historic and reliable cost information for all Franchised Restaurants.

• For purposes of this Item 19, Restaurants operating at Traditional Locations are Restaurants that do not operate from Non-Traditional Locations.

• For purposes of this Item 19, Restaurants operating from Mall Storefront Locations are Restaurants that operate at malls, but are located on the perimeter of the mall and feature outdoor ingress and egress.

• Cost of Goods Sold includes the cost of all food, beverages, and paper goods used in the Restaurants.

• The financial performance representations above do not reflect the cost of labor, operating expenses, or other costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit.

Section VI – Blaze Pizza Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️