The Financial Breakdown of a Blaze Pizza Franchise

Since its foundation in 2011, Blaze Pizza has managed to open more than 350 franchise units. Except in the United States, they also have franchises in Canada, Kuwait, Saudi Arabia, Bahrain, and the United Arab Emirates, so information about this business opportunity can be attractive to the U.S and international investors.

In this Blaze Pizza franchise review, we will analyze the cost, fees, and profit that every owner can expect from this brand outlet. Although this is a relatively new pizza chain, their franchising offer is one of the best in the Pizza Industry.

How Much Does The Blaze Pizza Franchise Cost

The estimated total cost of the Blaze Pizza franchise is in the range between $545,500 and $1,145,500; in this financial prediction is included an Initial Franchise Fee of $30,000, first month’s rent, construction of the building, signage, working equipment, training, and all other necessary starting costs.

The unique feature of this franchise is that their pizza cooking time is only 3 minutes: these blazing ovens are more expensive than regular ones, and because of that fact, future Blaze Pizza franchise owners will have more significant startup expenses regarding working equipment.

Also, the exact cost will depend on the type of franchise that the investor chooses!

The Traditional Restaurant will have approximately 2,000 to 3,000 square feet, and the Non-Traditional location will have space of 1,000 to 1,200 square feet, which means that the new Blaze Pizza franchise owner of the so-called Traditional Restaurant will have much higher costs regarding improvements of the building and higher outlet monthly lease cost.

So all interested investors who have a limited starting budget can choose the option of starting Non Traditional restaurant; this type of franchise has a lower starting cost, and monthly rent is much more affordable than for Traditional Restaurants.

Blaze Pizza franchise cost list:

  • Leasehold Improvements: $233,000 – $475,000
  • Furniture and Work Equipment: $185,000 – $300,000
  • Computer and POS Systems: $22,000 – $35,000
  • Uniforms and Initial Inventory: $24,000 – $41,500
  • Opening Advertising: $10,000 – $30,000
  • Store First Month’s Rent: $3,000 – $24,000
  • Initial Training Expenses: $5,000 – $7,500
  • All other costs: $20,000 – $50,000
  • Estimated total investment cost: $545,500 – $1,145,500

This company can offer funding assistance for future franchise owners because this brand has relationships with third-party funding sources. 

Blaze Pizza Franchise Fee

Blaze Pizza franchise fees are a one-time Initial Fee of $30,000 and ongoing monthly fees which will cost franchise owner 7% ( Royalty Fee 5%+Ad Fee 2%) of the monthly Gross Revenue that the outlet makes. Also, a franchisee must spend 2% of the pizzeria total Gross Sales of the immediately preceding 6-month period on Local Advertising.

The most significant advantage regarding the cost of the fees is that this franchisor doesn’t charge an Initial Training Fee for the investors who are starting their first or second franchise. This is not a typical procedure among franchising brands; usually, the Initial Training cost is between $5,000 to $15,000, so this benefit will significantly reduce the Blaze Pizza franchise cost.

Every franchisee also must regularly pay the Training Software & Tablet Lease Fee; the monthly cost of this fee is $120, and it is necessary to make an initial one-time $600 payment (Setup Fee). Training software and proprietary recipes are inaugurated in these tablets, and because of that, every franchisee must have at least two of them in the facility.

The Blaze Pizza Franchise Agreement usually has 5 years duration, and after this period, the franchisee must pay the Renewal Fee, which costs is $15,000.

Blaze Pizza franchise fee list:

  • Initial Fee: $30,000 – one-time cost
  • Monthly Royalty Fee: 5% of the Gross Sales – an ongoing cost
  • Monthly Ad Royalty Fee: 2% of the Gross Sales – an ongoing cost
  • Local Advertising: 2% of total Gross Sales of the immediately preceding 6-month
  • Training Software and Tablet Lease Fee: one-time $600 setup fee + $120 per month
  • Additional Training Fee: $500 – $1,500 per week – Only in case the franchise has operational deficiencies
  • Franchise Agreement Renewal Fee: $15,000

Blaze Pizza Franchise Profit

The Blaze Pizza franchise owner can make $42,896 to $234,915 per year. The restaurants on the Traditional Locations produce an average profit of $102,689 and the ”Mall Storefront” restaurants $94,289. 

The Net Profit Margins in Pizza Industry are approximately 10%, which means that franchised restaurants will need to have a high Gross Income if the owner wants to make a quick Return of Investment. The good news is that Blaze Pizza franchises are high earners, and they have more and more regular customers every day.

Blaze Pizza franchises yearly Gross Revenue by location:

  • Traditional Location Restaurants: On average $1,026,893 
  • Mall Storefront Restaurants: On average, $942,892

We collected this Gross Revenue data from the Blaze Pizza Franchise Disclosure Document(FDD), ITEM 19. But, we didn’t find any data about operating expenses in their FDD, so we assumed that this pizza chain could make at least 10% Net Profit Margin; this is average that other similar type franchised pizza restaurants make. 

Some pizza outlets owners make a 20% Profit Margin, but that are exceptions. We wanted to provide an honest Blaze Pizza franchise review, and because of that, our profit estimation is at the low-end of what the owner of this outlet can make. 

This pizza chain customers can order the custom pizza with a cooking time of only 3 minutes; this fast service makes these outlets more popular every day among customers. So it is expected that these outlets will deliver even more annual profit to their owners in the future. 

Blaze Pizza History

Elise & Rick Wetzel, the founders of fast food restaurant franchise Wetzel’s Pretzels, came to the idea in 2011 to start a pizza chain that will offer something new on the market. In 2012 it was opened first Blaze Pizza outlet, and today, this brand has more than 350 franchise units in the U.S., Canada, and Asia.

The Blaze Pizza has a similar business concept as the Duck Donuts franchises; the customers can choose the dough, sauce, and toppings on their pizza. Also, they offer different types of doughs as gluten and sugar-free, so people who have dietary restrictions can eat this restaurant’s food without worrying about their health issues.

2012 LeBron James invested $ 1 million of his money in this brand and, this investment has paid off many times over; he has multiplied the initial investment to $ 40 million. Today, this athlete owns 19 Blaze Pizza franchises, and he is helping the company grow by promoting it on its social networks and as the ”actor” in promotional videos.

This company started expanding on the International market in 2015 when they have opened the first Blaze Pizza franchise in Canada. From 2018 these pizza outlets are also presented on the Asian market; they have franchises in Bahrain, Saudi Arabia, and UAE.

This company is one of the fastest-growing food chains in the United States. As the name ”Blaze Pizza” suggests, this restaurant’s food cooking time is minimal; after three minutes, the pizza is cooked, and customers can start enjoying the food they ordered.

This company has a bright future; more and more entrepreneurs want to own Blaze Pizza, and that is because this franchise cost and profit ratio are excellent.

Summary

This company has found its place under the business sun in the pizza market that is becoming more and more saturated every year. With their “Build Your Own” pizza service, they have managed to gain a large base of loyal customers, so we wanted to do a review that will give helpful information to the interested investor.

The Blaze Pizza is a medium-cost franchise opportunity. All investors who have the necessary investing fund to start this brand outlet can expect a sound and secure income every month. These restaurants deliver a 10% Net Profit Margin, and on average, they have Gross Sales Revenue of approximately $1,000,000, which mean that investor can expect that this investment will pay off in the long run.

Written by:

Stuart MacPherson

Hi, I'm Stuart. I've been running my own small business since 2019 after leaving a successful career in finance. I created FranchiseTheory to share my enthusiasm for franchising and the franchise business model.

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