Zaxby’s Franchise Cost & Fees & Opportunities 2022 | How to Open

In this article, we’ll look at Zaxby’s franchise and how much they cost. According to their ratings, Zaxby’s is a popular and profitable fastfood chain. Before you can get the highly sought after Zaxby’s franchise, you need to know what it entails.

zaxby's franchise

About Zaxby’s

Zaxby’s is an upscale fast-food chain based primarily in the Southeast.

The restaurant’s slogan is “Real Chicken,” and its most popular options are chicken (such as buffalo wings and chicken fingers).

But it also serves fries, sandwiches, and salads known as “zalads.”

In 1990, childhood friends Zach McLeroy and Tony Townley started the business in Statesboro, Georgia.

They also offer franchising opportunities. Zaxby’s has 908 franchises in the United States as of 2021.


Zaxby’s Franchise Cost

The franchise fee for Zaxby’s is $35,000 per restaurant.

Licensees should have a net value of at least $700,000, with more than half of that in cash reserves.

The initial outlay typically ranges between $284,000 and $664,300.

They also charge a 6% royalty fee on net sales on a continuous basis.

Before starting their own eatery, holders must complete a two-month training program and attend quarterly franchisee symposiums.

However, they don’t require owners to serve in the restaurant.

At least one person with a 25% or higher claim in the fast food location must act as the “Designated Principal” and supervise the business every day.

The franchisor is Zaxby’s SPE Franchisor LLC. 

The franchisor permits licenses for fast casual dining restaurant(s).

Their menu consists primarily of chicken fingers and buffalo wings, as well as an array of salads and sandwich baskets.

They are all accompanied by a variety of unique Zaxby’s-brand sauces.

How do I Start a Zaxby Franchise?

Make Sure you have Enough Capital

You must have a net worth of more than $284,000 to open a Zaxby’s franchise.

Consider the financial investment required for a restaurant franchise.

Evaluate building and real estate costs, and the cost of equipment and signs.

The cost of licenses and permits, the cost of uniforms, the cost of insurance, and so on must all be considered.

Assess your previous experience and strengths.

Before applying to become a Zaxby’s franchise owner, you should carefully evaluate your previous business experience.

Examine the economy’s suitability.

Before progressing with the franchising proposal, you should check the market availability for Zaxby’s franchises and see if there are any available markets in your area of interest.

Fill out the application form.

The Zaxby’s licensing committee will evaluate your proposal.

The moment they receive your online application, they will email you a verification receipt.

Along with the franchise owner’s contact info.

Obtain approval and start your Zaxby’s franchise.

Once your banking and personal history checks are concluded, they will grant you franchise authorization.

They will approve only applicants who meet all the prerequisites of franchise owners.

zaxby's franchise

Duties and Constraints

Franchisees must dedicate their maximum effort to the restaurant’s proper management, publicity, and function.

The franchisor suggests that the assigned principal be deeply involved in the restaurant’s operation.

It does not, however, require the designated principal or any of the owners to be invested in the daily operation and on-premises oversight of the restaurant.

The designated principal must have authority over all restaurant policy choices and the power to obligate the partner in all transactions with the franchisor.

At all times when the restaurant is open for business, it must be personally supervised on-site by a certified manager.

Franchisees may deliver only products and services endorsed in written form by the franchise owner to clients in the restaurant.

Furthermore, franchisees must provide the particular services and goods stipulated by the franchisor in the handbook or elsewhere in writing.

Franchisees must only use the restaurant to run the system restaurant.

The initial start-up term is 10 years from the date of the restaurant’s opening. It may allow franchisees to reinstate for one extra consecutive 10-year term, subject to the franchisor’s demands.

The franchisor does not provide active or passive funding, and it does not assure the lease or other responsibilities of a franchisee.

Take into account that it can take up to 2.5 years for a food service franchise to start, break even, and stabilize.

Risks of a Zaxby’s Franchise Investment

Some of the risks associated with Zaxby’s growth strategies and operations are as follows:

COVID and Other Global Epidemic Incidents

The COVID-19 pandemic has altered Zaxby’s, as has most every other business.

They are concerned that external variables such as this epidemic will impede their ability to hire employees in their branches

In severe cases, will make it more difficult to obtain the materials needed and raise market prices.

Inability to Create and Implement Ideal Growing Schemes

Their progress is dependent on defining and actualizing effective business strategies.

There is a threat that they will be unable to select suitable strategies or successfully implement them in the industry standards.

Failure to Find Suitable Locations for their New Shacks

Including opening these shacks on time or under favorable conditions.

Factors that may affect the timing of the company’s plans to open these new shacks include:

Difficulty finding attractive lease terms, or a labor shortage.

Including difficulty finding permits starting these shacks on a timely basis, and so on.

Risks with Expansion

Especially to new and unfamiliar locations.

Because Zaxby’s intends to expand to new and unfamiliar markets, this may present additional risks to success.

This is because diverse consumer tastes and preference patterns are difficult to predict.

Furthermore, when expanding to a new location, it takes longer to reach the targeted level of sales and may be too much to bear.

Final Words

As previously stated, Zaxby’s is a growing company in the food and beverage industry.

We consider it a profitable business venture, owing to its numerous success stories.

If your budget does not allow for a Zaxby’s franchise, look into other options.

Frequently Asked Questions

The profit margin is around 8.5%.

$2 billion

$12 million

Bernard Acoca

941 currently.

Zach McLeroy and Tony Townley

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *