Blaze Pizza Franchise Costs $846K (2023 Stats)
With 340 units in the US of which 96% are franchised, Blaze Pizza is another popular pizza franchise. And it’s also relatively affordable too: with a $846,000 investment cost, it’s on the lower end vs. other pizza franchises.
But is a Blaze Pizza franchise a profitable business? How much money can you make with a Blaze Pizza restaurant? What’s the payback period for your investment?
In this article we’re looking at Blaze Pizza and the information disclosed in its latest Franchise Disclosure Document to find out whether you should invest in this franchise. Let’s find out!
Key stats
| Franchise fee | $30,000 |
| Royalty fee | 5.00% |
| Marketing fee | 4.00% |
| Investment (mid-point) | $846,000 |
| Average sales | $1,231,000 |
| Sales to investment ratio | 7.0x |
| Minimum net worth | $500,000 |
| Minimum liquid capital | $300,000 |
Find the most profitable franchises on
Compare 1,000+ franchises and download unlimited FDDs
 | Blaze Pizza |
| FRANCHISE FEE | $30,000 |
| ROYALTY FEE | 5.00% |
| INITIAL INVESTMENT | $605,000 – $1,087,000 |
| AVERAGE REVENUE | $1,231,000 |
Access all the stats
About Blaze Pizza
Blaze Pizza is an American fast-casual pizza concept chain with over 340 units in 38 US states and six countries globally.
Its main menu items are pizza, salads, cheese bread, desserts, and drinks.
It was founded in 2011 by Rick and Elise Wetzel in Pasadena, California. The chain began franchising in 2012 and is headquartered in Los Angeles, California.
Blaze Pizza franchise pros and cons
Pros
- Robust marketing strategies: Blaze Pizza utilizes robust digital marketing teams to help franchisees with ongoing marketing planning and execution. Its marketing experts help franchisees implement effective national campaigns and trusted advertising tools such as social media, mobile marketing, influencer marketing, and local store marketing.
- Real estate and construction: The brand provides its franchisees with real estate experts to establish their restaurants. They help them access viable business locations in terms of high traffic, parking convenience, visibility, and competition. It also helps them with construction plans, designs, branding, lease negotiations, and getting the right fixtures, such as furniture.
- Pre-opening training: The brand has a detailed pre-opening training program to help franchisees get the brand’s concept, such as how to prepare their menu, find and hire the right staff, keep records, and market their grand opening. Franchisees get 75 hours of on-site training and 5 hours of classroom training.
- Exclusive territory: The brand offers franchisees an exclusive, protected territory in which to operate their businesses and thrive. It does not operate competing channels or grant other franchises in the protected area.
Cons
- No absentee ownership: The Blaze Pizza franchise is not a passive business opportunity. The franchisees need to be fully involved in the day-to-day operations of their restaurants.
- Not a mobile unit: The franchise can’t be run from home or a mobile facility.
- Competition: The brand faces tough competitors such as Papa John’s, Marco’s Pizza, and Papa Murphy’s, all competing for a share of the lucrative pizza industry
Blaze Pizza franchise costs
You would need an investment of around $846,000 to open a new Blaze Pizza restaurant.
As the investment amount is an average, it may vary based on several factors. For example, rent varies in different places which will affect the total investment. According to the latest FDD, the investment amount generally ranges between $605,400 – $1,086,500.
The investment amount covers all the startup costs needed to start a fast-casual dining restaurant. In addition to the initial franchise fee of $30,000, this amount also covers:
- Formation costs: architect fees, engineer, leasehold improvements, furniture, fixtures, equipment, décor, signage, graphics, computer/information systems, initial training expenses, professional fees, etc.
- Marketing fees: grand opening kit, grand opening advertising program, grand opening free pizzas.
- Operating costs: initial inventory, uniforms, insurance deposits, first month’s rent, working capital for first 3 months, etc.
| Type of cost | Low | High |
|---|---|---|
| Initial franchise fee | $30,000 | $30,000 |
| Formation costs | $537,000 | $941,000 |
| Marketing fees | $14,900 | $41,500 |
| Operating costs | $23,500 | $74,000 |
| Total | $605,400 | $1,086,500 |
Find the most profitable franchises on
Compare 1,000+ franchises and download unlimited FDDs
| Blaze Pizza |
| FRANCHISE FEE | $30,000 |
| ROYALTY FEE | 5.00% |
| INITIAL INVESTMENT | $605,000 – $1,087,000 |
| AVERAGE REVENUE | $1,231,000 |
Blaze Pizza franchise fees
The initial franchise fee for a Blaze Pizza franchise is $30,000. In addition to the initial franchise fee, you must pay to the franchisor a royalty fee of 5.00% of revenues.
Blaze Pizza franchise revenue
On average, a Blaze Pizza franchise made $1,231,000 in sales per year in 2022 (+12% vs. 2021).
This number is calculated based on the annual median turnover of 272 franchised restaurants operating in 2022, including both traditional locations and mall storefront restaurants.
| Location | Number of restaurants | Median gross sales |
|---|---|---|
| Traditional location | 257 | $1,234,476 |
| Mall storefront | 15 | $1,178,187 |
| Total | 272 | $$1,231,372 |
Blaze Pizza franchise profits
On average, a Blaze Pizza franchise makes $197,000 in profits per year (16% profit margin).
Note that this 16% profit margin (adjusted EBITDA) is on the lower end compared to similar franchises as per our intelligence (~25-27% industry average).
Yet, also note that Blaze Pizza doesn’t provide any financial information regarding the costs of its franchised restaurants. Instead we had to use the industry average for labor costs (29% sales) as well as company-owned restaurants’ information for COGS (25%).
| Profit-and-loss | Amount ($) | As % of sales |
|---|---|---|
| Sales | $1,231,372 | 100% |
| COGS | $(307,843) | 25% |
| Gross Profit | $923,529 | 75% |
| Labor | $(357,098) | 29% |
| Marketing and royalty costs | $(110,823) | 9% |
| Occupancy | $(110,823) | 9% |
| Other OpEx | $(147,765) | 12% |
| EBITDA | $197,019 | 16% |
What does the adjusted EBITDA mean exactly? You should keep in mind that this adjusted EBITDA is not net income. Indeed, you will need to deduct taxes, debt interest expenses, and other costs from adjusted EBITDA to get to net profits, which we estimate at about 10% of sales.
Find the most profitable franchises on
Compare 1,000+ franchises and download unlimited FDDs
| Blaze Pizza |
| FRANCHISE FEE | $30,000 |
| ROYALTY FEE | 5.00% |
| INITIAL INVESTMENT | $605,000 – $1,087,000 |
| AVERAGE REVENUE | $1,231,000 |
Disclaimer
Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.
All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.
