Blackjack Pizza - Franchise Review

In 1983, Vince Schmul, former Domino's employee, founded Blackjack Pizza. Domino was almost monopolizing the pizza delivery industry. Schmul seized the opportunity of the growing market to offer an alternative for the avid pizza consumer, hence Blackjack Pizza. He then decided to share this vision by popularizing Blackjack Pizza as a franchise in 1988.
One of Blackjack Pizza's tag lines is: "Better Pizza, Better Value", referring to the difference of product and service that they provide compared to Dominos.
Blackjack Pizza might be a cheaper pizza but they do this without sacrificing or compromising the quality of what they are serving.
The total investment for franchising Blackjack Pizza is $ 140,000.00-300,000.00 while the initial Franchise fee is $ 10,000.00. The royalty and advertising fee is 3% of gross receipts. The term of the contract, is usually 10 years and if the franchisee decides to continue after the end of contract, he just has to pay an amount equal to the greater of $2,500 or 10% of the current initial franchise fee for the renewal fee.
Franchisees of Blackjack Pizza enjoy the benefits of ongoing assistance through training and support and marketing assistance through nationwide advertising.
The franchise provides its franchisees an initial training program that is conducted in Denver, Colorado, which includes up to 20 business days on-the-job training and 3 business days of follow-up training. They also grant access to promotional and advertising materials to help in introducing the new franchise and to continue making their products known to clients.
Blackjack Pizza assigns where the franchisee will operate so as not to compete with other units and to keep other Blackjack Pizza franchises from being established within that area.
Franchisees can own more than a single unit of Blackjack Pizza in fact about 25% of the franchisees own more than one unit. If the franchisee desires and qualifies to purchase rights to develop more than one business, he will be offered a development agreement.
It is required that each unit to have a minimum of 15 employees for the operation of the business. Experience is also required to acquire the franchise. To qualify you need to have industry experience, general business experience and marketing skills. Though the franchisee is not required to be present at the unit at all times, he should assign a manager to operate the business on his behalf.
Blackjack Pizza has continued to add franchise outlets to the system under a policy of slow, controlled growth.
When looking to start any business it is important, particularly considering today's market, that you look for specific ways to cut minimize or reduce overhead and risk. Any business is going to have risk, but it is important to have a full understanding of the amount of investment, startup cost and "ROI" (Return on Investment).
Most people are not aware that 80% of ALL franchise endeavors fail in the first two to five years leaving large debts looming for years thereafter.

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