Zaxby’s Franchise FDD, Profits & Costs
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.
Initial Investment
How much does it cost to start a Zaxby’s franchise? It costs on average between $1,460,000 - $3,811,000 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.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $35,000 |
| Lease Deposit and Payment | $10,000 to $19,000 |
| Utility Deposits | $0 to $9,000 |
| Building | $640,000 to $1,300,000 |
| Sitework | $150,000 to $990,000 |
| Architect & Engineer | $45,000 to $110,000 |
| Permits and Licenses | $2,000 to $150,000 |
| Accounting and Legal Fees | $500 to $25,000 |
| Furniture, Fixtures & Equipment Package | $445,000 to $497,000 |
| Technology System | $75,000 to $217,500 |
| Signage | $23,000 to $245,000 |
| Insurance | $1,000 to $17,000 |
| Printing/Business Supplies | $300 to $1,000 |
| Initial Marketing Contribution | $5,200 to $10,000 |
| Initial Inventory | $5,000 to $22,000 |
| Uniforms | $1,500 to $5,000 |
| Training Expenses | $10,000 to $25,000 |
| Pre-Opening Payroll | $10,000 to $37,000 |
| Additional Funds – 3 Months | $1,000 to $96,000 |
| Total Estimated Initial Investment | $1,460,000 to $3,810,500 |
Zaxby’s Franchise Disclosure Document
Frequently Asked Questions
What funding options are available for a Zaxby’s franchise?
Most franchise buyers in Zaxby’s’s investment range finance their unit through an SBA 7(a) loan, with some multi-unit operators using SBA 504 loans for real estate. Buyers with rollable retirement funds sometimes use a ROBS structure to reduce debt service. See SharpSheets’ financial model hub for funding guidance.
How long does it take to pay back a Zaxby’s franchise investment?
Payback periods for franchises in Zaxby’s’s category typically run 3-7 years, depending on investment level, location performance, and financing structure. Actual payback varies significantly by unit performance and debt service obligations.
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.
SharpSheets Editorial Team | sharpsheets.io | Last Updated: June 2026
→ How much does a Zaxby’s franchise owner make? Full income breakdown and analysis.
Disclaimer
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