Blaze Pizza Franchise Opportunity for 2022
Written by: Collins Kibet
This article is based on its most recent FDD. Keep reading or watch the video originally recorded on Vetted Biz Youtube Channel
Blaze Pizza was founded in 2011 by Rick and Elise Wetzel of Wetzel’s Pretzels. The first location was opened in 2012 in Irvine, California. The Wetzels modeled Blaze Pizza as a made-to-order approach to serving customers. The company’s name comes from the fact that the create-your-own pizzas are “Fast Fire’d” in a high-temperature open-flame oven – an average cook time is 3 minutes. Like Chipotle, Blaze Pizza customers choose what ingredients they want on their pizza while moving down a service line.
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Become a Blaze Pizza Franchise A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business… Owner
In early November 2019, Blaze Pizza announced the promotion of Mandy Shaw to the president and chief executive officer. Shaw has been with Los Angeles-based Blaze Pizza since 2018 as its chief financial officer and has also served as interim CEO since August 2019. Shaw has played a critical role in the company’s rapid growth over the past two years.
In today’s video, find out about how much a Blaze Pizza Franchise owner makes.
How Much is a Blaze Pizza Franchise A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business…?
The initial franchise fee to start a Blaze Pizza franchise is $30,000.
The coronavirus pandemic definitely had a huge effect on Blaze Pizza but it seems to be growing rapidly given that it was founded in 2011.
Blaze Pizza Franchise A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business… Initial Cost
The total investment necessary to begin the operation of a Blaze Pizza restaurant is between $565,400 and $1,101,500 which includes $30,600 that must be paid to the franchisor.
Estimated Initial Investment. Your Estimated Initial Investment Franchise Agreement
| Category of Investment | Low Amount | High Amount | Method of Payment | When due | To Whom Paid |
|---|---|---|---|---|---|
| Initial Franchise Fee Is a fee that franchisees pay to franchisors when signing an agreement, for establishing a franchise relationship, and getting some initial services. It is… | $30,000 | $30,000 | Lump Sum | When you sign your Franchise A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business… Agreement | Us |
| Architect/Engineer | $15,000 | $22,500 | As incurred | As invoiced | Approved Suppliers |
| Permits and Liquor Licensing | $1,500 | $25,000 | As incurred | As invoiced | Approved Suppliers and Government Agencies |
| Leasehold Improvements | $233,000 | $475,000 | As incurred | As invoiced | Approved Suppliers |
| Furniture, Fixtures, Equipment and Décor | $185,000 | $300,000 | As incurred | As invoiced | Approved Suppliers |
| Signage and Graphics | $6,500 | $34,500 | As incurred | As invoiced | Approved Suppliers |
| Grand Opening Kit, Menu Boards | $4,900 | $5,500 | As incurred | As invoiced | Approved Suppliers |
| Computer Equipment & Information/POS Systems | $22,000 | $35,000 | As incurred | As invoiced | Us or Approved Suppliers |
| Uniforms, Initial Inventory The value of the total finished and unfinished goods and materials the business holds for future sale. and Smallware | $24,000 | $41,500 | As incurred | As invoiced | Approved Suppliers |
| Opening Advertising | $10,000 | $30,000 | As incurred | As invoiced | Approved Suppliers |
| Grand Openind Fee Pizzas | $0 | $6,000 | As incurred | As invoiced | Approved Suppliers |
| Insurance Deposits | $500 | $5,000 | As incurred | As invoiced | Insurance Carrier |
| First Month’s Rent/Security Deposit | $3,000 | $24,000 | As incurred | As invoiced | Landlord |
| Initial Training Expenses | $5,000 | $7,500 | As incurred | As invoiced | Approved Suppliers |
| Professional Fees Professional fees are revenues or expenses of services from people specially trained in specific fields of arts and sciences. eg as doctors, architects, lawyers,… | $5,000 | $15,000 | As incurred | As invoiced | Your Financial and Legal Advisors |
| Additional Funds AFN = Projected increase in assets – spontaneous increase in liabilities – any increase in retained earnings Known as AFN or additional funds needed… — 3 Months | $20,000 | $45,000 | As incurred | As invoiced | Suppliers and Employees |
| TOTAL ESTIMATED INITIAL INVESTMENT The amount of funds necessary to begin operations of a business or franchise including the first three months of operation. | $565,400 | $1,101,500 |
Blaze Pizza Ongoing Franchise A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business… Costs and Fees
The continuing royalty fee payable to the franchisor is 5% of gross sales The total amount in dollars made in the business before expenses are deducted. See also Gross Revenue.. The creative fund distribution also takes up about 2% of weekly gross sales.
How much do Blaze Pizza franchise owners make?
The average gross sales of all franchised Blaze Pizza restaurants between 2019 and 2020 was $1,103,681. The 2020 median gross sales were $1,183,590 and the 2019 median gross sales were $921,602.
Based on the average median gross sales, we calculated the time it would take to recoup your initial investment The amount of funds necessary to begin operations of a business or franchise including the first three months of operation. with 10%, 15%, and 20% profit margins. The results are shown below.
2020 Blaze Pizza Median Franchise Sales: $921,602
| Initial investment The amount of funds necessary to begin operations of a business or franchise including the first three months of operation. (midpoint) | %Profit margin of median franchise A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business… sales The total amount in dollars made in the business before expenses are deducted. See also Gross Revenue. | Estimated Profits | Time to recoup investments |
|---|---|---|---|
| $ 833,450 | 10% | $ 92,160 | 11.5 years |
| 15% | $ 138,240 | 8.5 years | |
| 20% | $ 184,320 | 7 years |
2019 Blaze Pizza Median Franchise Sales: $1,183,590
| Initial investment The amount of funds necessary to begin operations of a business or franchise including the first three months of operation. (midpoint) | %Profit margin of median franchise A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business… sales The total amount in dollars made in the business before expenses are deducted. See also Gross Revenue. | Estimated Profits | Time to recoup investments |
|---|---|---|---|
| $ 833,450 | 10% | $ 118,359 | 9.5 years |
| 15% | $ 177,538 | 7 years | |
| 20% | $ 236,718 | 6 years |
Is the Blaze Pizza Franchise A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business… Profit Worth the Franchise Cost?
When you go to sell a Blaze Pizza franchise based on the median multiple of 0.31 and net sales averaging between 2019 and 2020 of $1,103,681, it would sell for $342,141 which is significantly lower than the midpoint investment amount of $833,450. Reselling your franchise after a few years will therefore lead to a loss.
However, if you own multiple Blaze Pizza franchises with net sales averaging over $5 million, then you will be able to earn more money from selling your franchises. For instance, if you own 10 franchises, the estimated gross sales would be about $11,036,810. With a median multiple of 0.86, the resale value of all the franchises would be $9,491,656. This resale value is higher than the total investment of the 10 franchises of about $8,334,500 by over $1 million.
Blaze Pizza Holdings, LLC Income Statement One of the major financial statements focused on a business’s revenues and expenses in a particular period. It is also known as the profit…
Blaze Pizza Holdings, LCC Income Statement. CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DEC 27, 2020; DEC 29, 2019; AND DEC 30, 2018.
| 2020 | 2019 | 2018 | |
|---|---|---|---|
| REVENUES | |||
| Company store retail sales The total amount in dollars made in the business before expenses are deducted. See also Gross Revenue. | $9,041,744 | $10,875,078 | $9,041,127 |
| Royalty revenue, franchise A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business… fees, and other Advertising fees and related income Income, also known as earnings or profits, is money that a person or a business receives in return for working, providing a product or… | $15,511,227 | $20,106,455 | $17,749,837 |
| Advertising fees and related income | $5,214,214 | $38,390,409 | $33,239,296 |
| Total revenues | $29,767,185 | $38,3900,409 | $33,239,296 |
| COSTS AND EXPENSES: | |||
| Company store operating costs | $10,827,682 | $10,659,564 | $8,756,128 |
| Advertising expenses | $5,374,729 | $7,408,876 | $6,261,845 |
| Selling, general, and administrative expenses | $16,483,946 | $17,114,716 | $13,025,393 |
| Total costs and expenses | $32,686,357 | $35,183,156 | $28,043,366 |
| (LOSS) INCOME FROM OPERATIONS | $(2,919,172) | $3,207,253 | $5,195,930 |
| OTHER INCOME — Income from equity method investment | $73,826 | $183,986 | $168,842 |
| NET (LOSS) INCOME | $(2,845,346) | $3,391,239 | $5,364,772 |
| NET LOSS ATRIBUTABLE TO NONCONTROLLING INTEREST A payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum, at… | $- | $- | $(172,396) |
| NET (LOSS) INCOME ATTRIBUTABLE TO THE COMPANY | $(2,845,346) | $3,391,239 | $5,192,376 |
Blaze Pizza Holdings, LLC Income Statement One of the major financial statements focused on a business’s revenues and expenses in a particular period. It is also known as the profit… Key Insights
Unlike in 2019 and 2018, Blaze Pizza made a net loss of $2.8 million in 2020. This was a massive decrease in net incomes from the previous two years which were $3.3 million in 2019 and $5.19 million in 2018. The net losses experienced in 2020 are most likely due to the severe economic impact of the novel coronavirus pandemic on many of their franchised outlets.
Blaze Pizza Holdings, LLC Cashflow Statement
Blaze Pizza Holdings, LCC Cashflow Statement. CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DEC 27, 2020; DEC 29, 2019; AND DEC 30, 2018.
| 2020 | 2019 | 2018 | |
|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES Operating activities are the core activities of a business. These activities are related to providing goods and/or services to the market of their industry….: | |||
| Net (loss) income Income, also known as earnings or profits, is money that a person or a business receives in return for working, providing a product or… | $(2,845,346) | $3,391,239 | $5,364,772 |
| Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | |||
| Depreciation A reduction in the value of an asset over time, due to wear and tear. and amortization The term “amortization” refers to: • In accounting, Amortization is very similar to depreciation, it’s a decrease in the value of an intangible asset, which… expense | 1,274,721 | 1,251,954 | 1,021,889 |
| Employee stock-based compensation | 731,080 | 881,440 | 798,320 |
| Deferred rent | 17,314 | 25,324 | (52,579) |
| Dividends A dividend is the distribution of some of a company’s earnings to a class of its shareholders, as determined by the company’s board of… from equity-method investments | 69,745 | 183,986 | 178,208 |
| Income from equity-method investments | (73,826) | (183,986) | (168,842) |
| Changes in operating assets and liabilities: | |||
| (Increase) decrease in assets: | |||
| Accounts receivable | (212,684) | (332,638) | (126,861) |
| Inventories | (70,517) | 6,329 | (18,414) |
| Prepaid expenses and other current assets | 835,773 | (164,237) | (410,118) |
| Other assets | 29,091 | 63,006 | (8,373) |
| Increase (decrease) in liabilities: | |||
| Accounts payable and accrued expenses | 903,929 | 1,567,381 | 567,587 |
| Deferred franchise A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business… fee revenue | (1,227,033) | (410,002) | 732,154 |
| Net cash (used in provided by operating activities | (567,753) | 6,279,796 | 7,877,743 |
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||
| Purchase of property and equipment | (567,426) | (709,836) | (325,553) |
| Return of equity-method investment | – | 63,245 | 32,528 |
| Purchase of franchisee restaurant | – | – | (925,000) |
| Net cash used in investing activities | (568,426)) | (646,591) | (1,218,025) |
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||
| Borrowing on line of credit | 10,000,000 | – | – |
| Cash received for stock A stock (also known as equity) is a security that represents the ownership of a fraction of a corporation. This entitles the owner of… options excercised | 60,881 | 80,180 | 8,850 |
| Purchase of remaining noncontrolling units | – | – | (6,400,000) |
| Deferred financing costs | – | – | (167,579) |
| Payments for capital leases | (191,707) | (211,922) | (163,898) |
| Distributions to members | (10,693) | (2,640,995) | (9,964,251) |
| Net cash provided by (used in) financing activities | 9,858,481 | (2,772,737) | (9,964,251) |
| NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND RESTRICTED CASH EQUIVALENTS | 8,722,302 | 2,860,468 | (3,304,533) |
| CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND RESTRICTED CASH EQUIVALENTS — Beginning of year | 8,571,921 | 5,711,453 | 9,015,986 |
| CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND RESTRICTED CASH EQUIVALENTS — End of year | $17,294,223 | $8,571,921 | $5,711,453 |
| SUPPLEMENTAL DISCLOSURES OD CASH FLOW The net profit before taxes plus payments to the owner(s), interest, and depreciation of assets. INFORMATION: Fixed asset additions unpaid | $93,123 | $55,429 | $16,163 |
| Fixed assets financed with capital leases | $38,673 | $107,755 | $118,798 |
Blaze Pizza Holdings, LLC Cashflow Statement insights
Blaze Pizza had a lot of cash and cash equivalents left at the end of 2020 compared to 2019 and 2018. The amount of cash left in 2020 was about $17.2 million and the amount left in 2019 and 2018 was about $8.571 million and $5.71 million respectively.
Despite this huge difference between 2020 and the other two years, these figures show that the financials of Blaze Pizza are healthy since they balance their spending on operations, finances, and investments well.
How many Blaze Pizza stores have opened and closed?
System-wide Outlet Summary for Years 2018—2020
| Outlet type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2018 | 224 | 290 | +66 |
| 2019 | 290 | 307 | +17 | |
| 2020 | 307 | 296 | -11 | |
| Company-Owned | 2018 | 6 | 7 | +1 |
| 2019 | 7 | 7 | 0 | |
| 2020 | 7 | 13 | +6 | |
| Total Outlets | 2018 | 230 | 297 | +67 |
| 2019 | 297 | 314 | +17 | |
| 2020 | 314 | 309 | -5 |
There has been a consistent growth in the number of franchised outlets since 2018 except in 2020 when there was a net negative change of 11.
This decline is probably due to the negative effects of the coronavirus pandemic.
Is it worth investing in a Blaze Pizza Franchise A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business…?
The average gross sales The total amount in dollars made in the business before expenses are deducted. See also Gross Revenue. of a Blaze Pizza franchise are over $1 million. This is an indication of a great business with massive sales. However, it takes time to recoup your initial investment The amount of funds necessary to begin operations of a business or franchise including the first three months of operation. with the payback period going as high as 11.5 years with a 10% profit margin. Many outlets continue to open around the country except in 2020 when the franchise was severely impacted by the economic impact of the covid19 pandemic.
In 2020, the franchisor also made a huge net loss of over $2 million unlike in 2018 and 2019 when the company experienced huge profits. The coronavirus pandemic definitely had a huge effect on Blaze Pizza but it seems to be growing rapidly given that it was founded in 2011.
We recommend that you speak to at least 5 franchise owners to get a better sense of their business model before deciding to buy one. You can also check out other franchising options in the Food & Beverage Industry —or others— on our Vetted Having put someone or something through a careful examination. At Vetted Biz, we put franchises and businesses through a careful examination and benchmarking of… Biz website.
