Blaze Pizza Franchise Cost & Opportunities 2023
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Have you ever thought about opening a Blaze Pizza franchise? If so, keep reading this article. In it, let’s talk about Blaze Pizza franchise cost. Since 2011 when it was launched, the company has spread over 350 more franchised units. Besides the United States, Blaze Pizza has franchises in the United Arab Emirates, Saudi Arabia, Canada, and Kuwait.
These real investment opportunities can be suitable for International investors. This article will examine the fees, management skills, franchise agreement, restaurant industry, franchise development, profits, and what each owner should expect from this Blaze Pizza franchise business plan. Despite being relatively new to the market, the franchise offers one of the best in the Pizza industry in fast-food restaurant chains.
Blaze Pizza History
The founders of the fast food franchise Wetzel’s Pretzels, Elise Wetzel and Rick Wetzel, 2011 had the bright idea of starting pizza chains that would offer something different and new in the market. Then in 2012, they opened the first Blaze Pizza outlet, and today the company has more than 350 franchises worldwide.
Blaze Pizza’s business concept is similar to that of Duck Donuts franchises, where customers choose their pizza’s dough, sauce, and respective filling. In addition, they offer different types of dough, such as sugar-free and gluten-free, for those with dietary restrictions to eat without worrying about health problems, a delicious pizza.
The athlete LeBron James 2012, invested approximately $ 1 million in the brand. His investment was very worthwhile because he managed to multiply his initial investment by $ 40 million. Currently, the athlete has 19 franchises of Blaze Pizza and helps the company to grow increasingly on their social networks. Social media, making promotional videos as an actor in the Blaze Pizza Restaurant.
Blaze Pizza expanded into the international market in 2015 when it opened its franchise in Canada. By 2018 the brand was already in the Asian markets and had only been growing. The company is one of the fastest-growing food franchises in the United States.
As the name says, “Blaze Pizza,” the time it takes to prepare the food is super-fast. In just three minutes, the pizza is ready, and customers can make their meals. In this sense, Blaze Pizza only tends to grow more and more, and many entrepreneurs want a franchise agreement. This happens because the franchise value and profits are great.
Blaze Pizza Franchise Value
The total Blaze Pizza franchise cost is around $545,00 and $1.145,500. So, in this financial forecast, the startup costs include the initial franchise fee of $30,000, construction of the building, first rent, working equipment, signage, the team’s training, advertising fees, marketing fees, pre-opening advertising, and other necessary costs.
The highlight of the franchise, its differential, is the time it takes to be ready, which is three minutes. In this sense, purchasing the needed ovens is much more expensive than the traditional ones, which are more expenses payable. So, for this reason, the new owners of the Blaze Pizza franchise in the initial phase may have their initial costs higher concerning the equipment needed to work. It’s worth remembering that the total value of a franchise will depend a lot on which model the investor chooses.
For example, a Traditional Restaurant will have around 2.000 to 3.000 square meters, and a Non-Traditional Place will have approximately 1.000 to 1.200 square meters. So, this means that the new Blaze Pizza Traditional Restaurant franchise will have a higher cost concerning the improvements needed in the building and more expensive rent.
Suppose you are an investor interested in opening a franchise with a limited initial limit. In that case, you can open a non-traditional restaurant because this franchise has a lower initial value. The monthly income is cheaper compared to the Traditional Restaurants.
Below is a list with these more specified values:
- Leasehold improvements: $233.00 – $475.00
- Work equipment and furniture: $ 185.00 – $ 300.00
- Computer System & POS: $ 22,000 – $ 35,000
- Initial Inventory and Uniforms: $ 24,00 – $ 41,000
- Advertising for opening: $10,000 – $30,000
- Initial Month’s Rent: $3,000 – $24,000
- Staff Training Expenses: $5,000 – $7,500
- Other costs: US$ 20,000 – US$ 50,000
- Total Cost: $545,500 – $1.145,500
The company offers financial assistance to new owners, as the brand has relationships with other funding sources.
Blaze Pizza has a one-time initiation fee of $30,000 and monthly payments that can cost the new owner 7% (2% ad fee and 5% ongoing royalty fee) of the monthly gross generated by the establishment. Furthermore, a franchise operator must spend 2% of the total gross sales of his Blaze restaurants in the six months on local advertising expenditure immediately beforehand.
The most relevant advantage regarding the number of fees is that the franchisor will not charge an initial training fee or administrative costs for investors opening their first or second franchises. This is different from a typical system among franchise brands, as the initial training fee is usually around $5,000 and $15,000, so this advantage will significantly reduce the Cost of a Blaze Pizza franchise.
Every franchisee will pay a monthly rental fee for the software and the tablets; the monthly Cost is $120, and a one-time initial payment of $600 (setup fee) is required. The training software and recipes will be launched on these tablets, so franchisees will have at least two on their premises in this phase of business operations.
A franchise agreement lasts for 5 years, and after the end of this period, the franchisee will need to pay a renewal fee of $15,000.
The following is a list of the most specified fees:
- Initial fee: $30,000;
- Monthly royalty fee: 5% of gross sales;
- Monthly advertising royalty fee: 2% on gross sales;
- Local advertising: 2% on total gross sales for the six months in advance;
- Fees for renting the training software and tablets: installation fee of $600 + $120 monthly;
- Fee for additional training (in case of possible operational deficiencies): $ 500 – $ 1,500; weekly;
- Fee for the renewal of the contract is $15,000.
Depending on franchise locations, a Blaze Pizza owner can earn approximately $42,896 to $234,915 annually. Restaurants in traditional areas have an average profit of $102,689, and those in malls have $94,289.
Pizza industries have a profit margin of approximately 10%, which means that franchised restaurants will need a high gross profit if the owner wishes to have a quick return on his investment. The good news is that more and more Blaze Pizza franchises are getting a customer base.
This data was collected from the Gross Revenue of the Blaze Pizza Franchise Disclosure Document (FDD), in item 19. However, we did not find data on the operating expenses of their FDD, so it is assumed that this franchise could earn at least 10% net, this being the average that other similar pizzerias make.
Some owners achieve a 20% profit margin, but these are exceptions. Our goal was to provide an accurate review of the Blaze Pizza franchise. For that reason, we made a lower profit estimate than what a store owner might generally make.
So Blaze Pizza has earned its place in the sun in the pizza market, a concept becoming more saturated daily. With their “Build Your Own” pizza service, they have managed to gain many customers. For this reason, we wanted to make a very faithful and helpful review so that new investors would know more about this chain and an attractive franchise opportunity.
Because people need to know the approximate franchise cost, initial franchise fee or additional restaurant, business experience, administration charge, additional funds, accounting fees, the extent of market penetration, and industry royalty. To analyze the current market.
Blaze Pizza is an excellent franchise opportunity with an average cost, product excellence, relevant market conditions, development fees, growth strategies, and ambitious growth plans. Therefore, all new investors who want and have the investment fund to be able to start this chain can expect a safe and solid income.
This fast-food restaurant chain has a net profit margin of 10% and, on average, has gross revenue from its sales of around $1,000,000. This means the investor can rest assured that his investment will be rewarded soon. We hope that this article has been helpful and has answered your questions.
Paul Martinez is the founder of EcomSidekick.com. He is an expert in the areas of finance, real estate, eCommerce, traffic and conversion.
Join him on EcomSidekick.com to learn how to improve your financial life and excel in these areas. Before starting this media site, Paul built from scratch and managed two multi-million dollar companies. One in the real estate sector and one in the eCommerce sector.