About Zaxby's Franchise
Zaxby's is a fast casual restaurant franchise specializing in chicken fingers, wings, sandwiches, and signature sauces.
The brand has been franchising since 2021 under Craveability Parent LLC and has built a passionate following across the southeastern United States with a menu centered on hand breaded chicken tenders, Buffalo wings, zalads, and the fan favorite Zax Sauce.
Each location offers a welcoming, casual dining atmosphere with a focus on quality and flavor.
Zaxby's Franchise Cost & Fees
Minimum Investment
$351K
Average Investment
$535K
Maximum Investment
$719K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 6% of your Gross Sales for the preceding week of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | National Marketing Contribution: Currently, 1.37% of Gross Sales per week (may be increased or decreased between 0.75% and 1.5% of Gross Sales). Co-op Marketing Contribution or Multi-DMA Advertising Contribution: 1.5% to 3.5% of Gross Sales per week. | National brand fund |
| Total Investment Range | $351,000 – $718,500 | Includes build-out, inventory, working capital |
The investment range of $351K–$719K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of your Gross Sales for the preceding week) and marketing fee (National Marketing Contribution: Currently, 1.37% of Gross Sales per week (may be increased or decreased between 0.75% and 1.5% of Gross Sales). Co-op Marketing Contribution or Multi-DMA Advertising Contribution: 1.5% to 3.5% of Gross Sales per week.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Lease Deposit and Payment | $10,000 | $19,000 |
| Utility Deposits | $0 | $9,000 |
| Initial Inventory | $5,000 | $20,000 |
| Furniture, Fixtures & Equipment | $214,000 | $313,000 |
| Technology System | $30,500 | $33,500 |
| Signage | $25,000 | $50,000 |
| Initial Marketing Contribution | $5,200 | $10,000 |
| Insurance | $1,000 | $17,000 |
| Permits and Licenses | $2,000 | $24,000 |
| Accounting and Legal Fees | $500 | $25,000 |
| Printing/Business Supplies | $300 | $1,000 |
| Uniforms | $1,500 | $4,000 |
| Training Expenses | $10,000 | $25,000 |
| Pre-Opening Payroll | $10,000 | $37,000 |
| Additional Funds - 3 months | $1,000 | $96,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of then-current Initial Franchise Fee (Franchise Agreement); $7,500 (Development Agreement) |
| Renewal Fee | 50% of then-current Initial Franchise Fee |
| Technology Fee | Currently, not charged. May be implemented or changed based on a percentage of Gross Sales, fixed fees, or usage fees with 30 days' written notice. |
| Audit Fee | Cost of audit |
| Extension Fee | $1,000 for each month (or portion of a month) |
| Accounting Services Fee | (1) $650 per month for bookkeeping services and payroll processing services, (2) $475 per month for either bookkeeping services only or payroll processing services only, (3) $225 per month for accounts payable services (available if you also pay for bookkeeping services), and/or (4) $15 annually per employee for Affordable Care Act reporting. |
| Supplier Approval | Our reasonable cost of the inspection and our actual cost of testing, including personnel and travel costs |
| Initial Training for Replacement Managers | $2,500 per person |
| On-Site Additional or Remedial Training of Consulting Services | Actual travel and living expenses of our employees or agents |
| Franchised Managed Training Program Fee | $500 to $1,500 per Restaurant annually |
| Conference Fee | Reasonable registration fee, which will vary by event. |
| Indemnification / Attorneys’ Fees and Costs / Damages | Amount of our liabilities, fines, losses, damages, costs and expenses (including reasonable attorneys’ fees) |
| Inspection Fee | Actual costs and expenses, but no less than $500 per additional inspection |
| Document Fee | Our actual costs and expenses (including cost of personnel and attorneys’ fees and expenses) |
| Substitute Royalty Fees and Marketing Fees | Greater of (1) the average annual amount of the Royalty Fees and Marketing Fees for the two years immediately preceding the Relocation Event or (2) the Royalty Fees and Marketing Fees paid to us and our Affiliates for the 12-month period preceding the Relocation Event |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | approximately eight weeks |
| Classroom Training | 20.5 hours |
| On-the-Job Training | 319 hours |
| Training Location | Phase One and Two classroom training is online via Zaxby’s University. Phase Three classroom training is online or in person at corporate offices in Athens, Georgia. On-the-job training for all phases is conducted at a Certified Training Facility (franchisee or affiliate operated). |
| Additional Training | Franchisor may require additional special programs or periodic additional training for Certified Managers with at least 60 days prior notice. Designated Principal is required to attend annually up to two meetings of franchisees with at least 60 days prior notice. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | typically a 0.25 mile radius around the Restaurant |
| Description | You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. You will, however, have certain limited protected rights within an area around your Restaurant designated by us, in our sole discretion (the “Protected Area”). We will not operate, or authorize others to operate, a Restaurant within the Protected Area, except for a Non-Traditional Outlet. A “Non-Traditional Outlet” is a Restaurant that is located at or operated from a non-traditional site, including (1) airports, bus and railroad terminals, and other public transportation facilities, (2) sports arenas, stadiums, and facilities, (3) gasoline service stations, highway rest stops, and travel plazas, (4) amusement parks or centers, zoos, parks, aquariums, museums, art centers, concert venues, theaters, drive-in theaters, movie theaters, amphitheaters, casinos, and other entertainment or tourist facilities, (5) supermarkets, convenience stores, department stores, outlet malls, and enclosed malls, (6) food courts, (7) hospitals and other health care facilities, (8) universities, schools, and education facilities, (9) convention centers, (10) military bases, (11) national and state parks, (12) concessionaire locations (including event-specific, non-permanent, temporary and/or movable stands, kiosks, trailers, tents or other similar installations), (13) limited access office buildings, business complexes, and dormitories, (14) ghost, dark, or cloud kitchens, and (15) food trucks. The Protected Area will typically be a 0.25 mile radius around the Restaurant, which is the minimum size that we will designate for a Protected Area. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years from opening of Restaurant (or 20 years if eligible for Development Incentive Program and opened in 2022) |
| Renewal Term | one additional successive 10-year term (no renewal term if initial term extended to 20 years under Development Incentive Program) |
| Renewal Fee | 50% of then-current Initial Franchise Fee |
| Renewal Conditions | Franchisee must provide written notice of intent to renew 6-12 months prior to expiration, be in good standing with full compliance of all agreements (no overdue payments, no more than one default notice, no more than three failed inspection reports), agree to all required modifications/refurbishments/upgrades, attend renewal training if required, execute a general release, have right to possession of location for renewal term, and furnish updated information. |
| Transfer Fee | 50% of then-current Initial Franchise Fee (Franchise Agreement); $7,500 (Development Agreement) |
| Transfer Conditions | No default; no outstanding monetary obligations; release signed by franchisee and owners; transferee qualifies; transferee signs assignment or then-current Franchise Agreement; new/existing owners sign then-current Guaranty; remodel/upgrade; complete required training; pay Transfer Fee; provide purchase/sale agreements; subordinate debt to franchisor/affiliates/co-ops/ZMAA if seller financed; transferor/transferee/owners execute consent to Transfer agreement. |
| Termination for Cause | Curable defaults (10-30 days to cure): failure to submit financial reports, payment default, breach of other covenants/agreements/standards. Non-curable defaults: insolvency/bankruptcy, abandonment of business, default in lease/loss of premises, failure to operate/maintain Technology System, gross understatement of Gross Sales (5% or more), material misrepresentation/false reports, violation of laws, failure to obtain/maintain permits/licenses, health/safety threats, misuse of Marks, criminal convictions/pleas, fraudulent/deceptive practices, unauthorized transfer, disclosure of confidential information, failure to meet site selection/opening deadlines, use of unapproved supplier, failure to comply with quality control standards, refusal of inspection/audit, failure to timely file required reports (3+ times in 12 months), failure to communicate with franchisor, default under other Related Agreements, knowingly maintain false books/records, 3+ default notices in term. |
| Non-Compete Period | 2 years after expiration or termination of Franchise Agreement or approved transfer |
| Non-Compete Details | During the term and for 2 years after termination/expiration/transfer, franchisee, owners, and family members (except for non-managerial positions in chicken restaurants) may not directly or indirectly own, manage, engage in, be employed by, advise, assist, make loans to, lease to, or have any other interest in (1) any restaurant business (other than a System Restaurant) specializing in chicken or (2) any entity granting franchises/licenses for such business, at any location in the United States. Post-term restrictions apply within a 10-mile radius of the Location or any other System Restaurant operating/under development at the time of expiration/termination/transfer. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | While we recommend that your Designated Principal be actively engaged in the operation of the Restaurant, we do not require your Designated Principal or any of your Owners to participate personally in the day-to-day operation and on-premises supervision of the Restaurant. Your Designated Principal must have authority over all business decisions related to your Restaurant and the power to bind you in all dealings with us. Your Designated Principal may serve as a Certified Manager for the Restaurant, provided that they complete the Training Program and only serve as a Certified Manager for a single Restaurant and participate in the day-to-day operation and on-premises supervision of the Restaurant. At all times that your Restaurant is open for business, it must be under the personal, on-premises supervision of a Certified Manager who must devote full time and energy during business hours to the supervision and management of the Restaurant. You must at all times maintain at least four Certified Managers for the Restaurant, each of whom may serve in such role for only the single Restaurant. |
| Required Suppliers | Franchisee must purchase all inventory items, ingredients, and packaging solely from designated or approved suppliers. Other items like equipment, supplies, signage, uniforms, smallwares, interior décor, advertising/marketing materials, architectural/civil engineering/general contracting services, insurance, and Technology System equipment/software must be purchased or licensed from approved or designated suppliers in accordance with franchisor specifications and guidelines. |
| Supply Restrictions | The franchisor has the right to require fixtures, furnishings, signs, equipment, products, supplies, and services to meet specifications, be a specific brand/kind/model, be purchased/leased only from expressly approved suppliers, be purchased/leased only from a single designated source (which may include franchisor or affiliates), and/or be purchased as part of a negotiated purchasing program/arrangement/contract. Purchases from designated/approved sources or in accordance with specifications will represent 75% of initial and ongoing operating purchases. |
| Franchisor Revenue from Suppliers | In fiscal year 2020, ZFL (predecessor franchisor) received $8,324,765 (4.9% of total revenues) from required purchases of proprietary food items. Contractual arrangements with manufacturers and suppliers include vendor program management fees of $0.0025 per piece or $0.02 to $3.75 per case for food items, and 1% to 5% of purchases for furniture, roofing materials, and installation costs from approved suppliers. These amounts (except for Coca-Cola and Keurig Dr Pepper fees) are contributed to Zaxby’s Conference Fund, Inc. (ZCF), which received $1,788,061 in 2020. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer financing, directly or indirectly, for any part of the initial investment. Your ability to obtain financing from third parties will depend upon factors such as the availability of financing generally, your creditworthiness, collateral you may have and lending policies of financial institutions. |
Zaxby's Franchise Earnings — Item 19
Average Revenue
$2.2M
Median Revenue
$2.2M
Revenue Range
$630K – $4.3M
Sample Size
741 units
Past financial performance does not guarantee future results. Individual results will vary.
Zaxby's Litigation & Risk Flags
Clean Litigation RecordZaxby's has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Zaxby's System Growth
Total Units
908
Franchised
762
Company-Owned
146
Zaxby's currently operates 762 franchised locations and 146 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2018 | 27 | 6 | 757 |
| 2019 | 17 | 10 | 756 |
| 2020 | 10 | 4 | 762 |
Transfers: 32 | Closures: 4
State Registrations
Registered in 14 states: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Wisconsin, Washington
Franchisor Financials (Item 21)
Revenue
$82.6M
Net Income
$76.2M
Total Assets
$1555.7M
Audited by PricewaterhouseCoopers LLP for year ending June 11, 2021.
Zaxby's Franchise — FAQ
The total investment to open a Zaxby's franchise ranges from $351,000 to $718,500, per their Franchise Disclosure Document. This includes the initial franchise fee of $35,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Zaxby's charges a royalty fee of 6% of your Gross Sales for the preceding week of gross sales, plus a National Marketing Contribution: Currently, 1.37% of Gross Sales per week (may be increased or decreased between 0.75% and 1.5% of Gross Sales). Co-op Marketing Contribution or Multi-DMA Advertising Contribution: 1.5% to 3.5% of Gross Sales per week. contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Zaxby's Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Zaxby's to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Zaxby's franchise owners report average revenue of $2.2M and median revenue of $2.2M. This is based on a sample of 741 units. Past performance does not guarantee future results.
Zaxby's has been franchising since 2021. The FDD shows an investment range of $351,000-$718,500, a 6% of your Gross Sales for the preceding week royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $35,000 and the total investment ranges from $351,000 to $718,500 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Zaxby's and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Zaxby's or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com