Zaxby’s Franchise FDD, Profits & Costs (2025)
Zaxby’s, a fast-casual dining leader, was founded in 1990 by Zach McLeroy and Tony Townley in Statesboro, Georgia. Their mission was simple: serve high-quality chicken in a fun, engaging setting.
Headquartered in Athens, Georgia, Zaxby’s began franchising in 1994. This expansion brought its chicken-focused meals to new markets beyond its home state. The menu features popular items like Chicken Fingerz, wings, sandwiches, and the iconic Zax Sauce, all in a family-friendly environment.
What makes Zaxby’s stand out is its commitment to quality and customer experience. With flavorful sauces and “indescribably good” chicken, Zaxby’s has built a loyal customer base.
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Initial Investment
How much does it cost to start a Zaxby’s franchise? It costs on average between $1,392,000 – $3,266,000 to start a Zaxby’s franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property.
| Expenditure | Low Amount | High 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 |
Average Revenue (AUV)
How much revenue can you make with a Zaxby’s franchise? A Zaxby’s franchised restaurant makes on average $2,600,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $1,662,000 yearly revenue for similar chicken franchises. Below are 10 Zaxby’s competitors as a comparison:
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Zaxby’s Franchise Disclosure Document
Frequently Asked Questions
How many Zaxby’s locations are there?
As of 2023, Zaxby’s operates over 900 locations across the United States. The majority of these locations are franchised, with a smaller portion being company-owned. Zaxby’s has a strong presence in the Southeastern U.S. but continues to expand its footprint across the country.
What is the total investment required to open a Zaxby’s franchise?
The total investment required to open a Zaxby’s franchise ranges from $1,392,000 to $3,266,000.
What are the ongoing fees for a Zaxby’s franchise?
Zaxby’s franchisees are required to pay a 6% royalty fee on gross sales. Additionally, there is a marketing fee of 4% of gross sales, which goes towards both national and local advertising campaigns. These ongoing fees are designed to support the brand’s growth and ensure consistent marketing efforts across all Zaxby’s locations.
What are the financial requirements to become a Zaxby’s franchisee?
To become a Zaxby’s franchisee, candidates must meet specific financial requirements. The minimum net worth required is $1 million, with at least $500,000 in liquid capital. These financial criteria ensure that potential franchisees have the necessary resources to cover startup costs and sustain the business during its early stages.
How much can a Zaxby’s franchise owner expect to earn?
The average gross sales for a Zaxby’s franchise are approximately $2.6 million per location. Assuming a 15% operating profit margin, $2.6 million yearly revenue can result in $390,000 EBITDA annually.
Who owns Zaxby’s?
Zaxby’s is co-owned by its founders, Zach McLeroy and Tony Townley, along with Goldman Sachs, which acquired a significant stake in the company in 2020. While McLeroy remains involved in the leadership of the company, the partnership with Goldman Sachs has helped to fuel the brand’s expansion across the United States.
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