Blackjack Pizza
Date Incorporation: 1983
Franchising Since: 1986
Headquarters: Colorado
Description: A Blackjack pizza business provides pizza delivery services, the delivery of other authorized food and beverage products and, in certain circumstances, related restaurant services.
Franchise Offer: Blackjack Pizza Franchising, Inc. is offering franchises for the operation of a business which offers pizza delivery services. If the franchisee desires and qualifies to purchase rights to develop more than one business, he/she can be offered a development agreement.
Financial Assistance: Neither the franchisor, nor any of its agents or affiliates, currently offer, directly or indirectly, any financing arrangements to the franchisee. The franchisor can, however, assist qualified persons by recommending a third party lender.
Training and Assistance: The franchisor will provide an initial training program to be conducted in the Denver, Colorado metropolitan area or at an alternative location to be determined by Blackjack. The initial training will consist of up to 20 business days of on-the-job instruction and up to 3 business days of follow-up training and assistance related to opening the franchised location. Up to two individuals are eligible to participate in our initial training program without charge of a tuition or fee. The franchisor will give the franchisee access to advertising and promotional materials. The franchisor will make its employees or designated agents available to the franchisee for advice and assistance in connection with the on-going operation of the business.
Territory: The franchisee will be granted a geographic area where the franchised location will be located and within which the franchisor will not establish and operate, or franchise anyone else to establish and operate, other Blackjack Pizza Businesses.
Term of Agreement and Renewal: The term of the franchise agreement is 10 years. If the franchisee is in good standing and signs the then current franchise agreement, they can renew.
Obligations and Restrictions: The franchisee (or his/her managing shareholder or partner) is not obligated to participate personally in the direct operation of the business, although it is recommended by the franchisor. If the franchisee does not participate in the day-to-day operation of the-business, he/she must designate a manager, or principal operator, to be responsible for the direct on-premises supervision of the Blackjack Pizza business. The franchisee must offer for sale and sell all those products and services that have been prescribed by the franchisor.
Total Number of Units: 45 units by year end 2006
Total Number of franchises Units: 41 franchised units by year end 2006
Investment Tables:
Initial Investment:
| Expenditures | Low | High |
|---|---|---|
| Initial franchise fee | $15,000 | $15,000 |
| Leasehold improvements | $30,000 | $110,000 |
| Lease costs | $2,000 | $4,000 |
| Food inventory | $2,500 | $5,000 |
| Equipment and signs | $31,800 | $100,000 |
| Supplies | $800 | $3,000 |
| Insurance | $8,000 | $20,000 |
| Initial training – travel and living expenses | $0 | $5,700 |
| Accounting | $0 | $1,000 |
| PIS system hardware and software | $8,500 | $20,000 |
| Pre-paid expenses, including security deposits, utility deposits and business licenses | $2,000 | $9,000 |
| Additional Funds (3 months) | $61,200 | $87,400 |
| Total | $161,800 | $380,100 |
Ongoing fees:
| Name of Fee | Amount |
|---|---|
| Royalty Fee | 3% of gross receipts |
| Advertising fee | Up to 3% of gross receipts |
| Local advertising allocation | 3% of gross receipts |
| Renewal | Amount equal to the greater of $2,500 or 10% of then current initial franchise fee |
Date of FDD: May 30, 2007
The above information has been taken from the UFOC/FDD of Blackjack Pizza
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