Zaxby’s Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$35,000
Investment required
$1,392,000 - $3,266,000
Royalty fee
6.00%

Zaxby’s: A Leading Name in Fast-Casual Dining

Zaxby’s has established itself as a premier American fast-casual chain, with over 912 thriving locations across the United States and a growth trajectory that shows no signs of slowing down.

The brand's impressive journey started in 1990 in Statesboro, Georgia, when entrepreneurs Zach McLeroy and Tony Townley founded the first Zaxby’s.

Known for its made-to-order menu, Zaxby’s delights customers with a variety of tasty options, including succulent chicken fingers, savory chicken wings, mouthwatering sandwiches, wholesome salads, and delicious appetizers.

Enhancing the dining experience are Zaxby’s signature dipping sauces, offering flavors like teriyaki, BBQ, and hot honey mustard.

Zaxby’s began its franchising journey in 1994 with the opening of its first franchise location in Bowling Green, Kentucky.

Headquartered in Athens, Georgia, and operating under Zaxby's SPE Franchisor LLC, Zaxby’s continues to solidify its position as a successful fast-casual dining franchise.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Franchise Fee $35,000 - $35,000
Lease Deposit and Payment $10,000 - $19,000
Utility Deposits $0 - $9,000
Building & Sitework $772,000 - $2,200,000
Architect & Engineer $45,000 - $75,000
Permits and Licenses $2,000 - $24,000
Accounting and Legal Fees $500 - $25,000
Furniture, Fixtures & Equipment Package $410,000 - $440,000
Technology System $60,200 - $92,200
Signage $23,000 - $134,000
Insurance $1,000 - $17,000
Printing/Business Supplies $300 - $1,000
Initial Marketing Contribution $5,200 - $10,000
Initial Inventory $5,000 - $22,000
Uniforms $1,500 - $5,000
Training Expenses $10,000 - $25,000
Pre-Opening Payroll $10,000 - $37,000
Additional Funds - 3 months $1,000 - $96,000
Total $1,391,700 - $3,266,200

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Number of units

2023
Franchised units

760

762

768

Company-owned units

146

146

144

Total units

906

908

912

Franchise Disclosure Document

Training 

Prior to opening a restaurant, the designated principal, key operator, and selected managers must attend and successfully complete an initial management training program, referred to as the Training Program.

This program is divided into three segments: Operations Basics, Operations Leadership, and Operations Excellence Capstone.

The training duration varies from six to nine weeks based on the participant's role and experience, and must be completed no later than 21 days before the restaurant opens. The training sessions are scheduled as needed.

While there is no tuition fee for the first four individuals to attend the Training Program, a fee of $2,500 per person is charged for each additional manager. Franchisees are responsible for covering all travel and living expenses for their representatives attending the training.

Territory Protection

Franchisees are granted the right to operate a Zaxby's Restaurant within a specific location referred to as the "Protected Area." The Single Unit Development Agreement is signed for each location and grants franchisees the right to construct a single Zaxby's restaurant within the Development Area. This Development Area could be a specific site or a larger area agreed upon and described in the Agreement.

The Company will not grant new Zaxby's franchises to any person or entity other than the franchisee for the operation of, and the Company will not open, any new Zaxby's restaurant within the Development Area. However, if the Company or any other franchisee already operates one or more Zaxby's restaurants within the Development Area, there are no guarantees of exclusivity.

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