Zaxby’s Franchise Costs, Fees & FDD

Year Business Began: 1990

Franchising Since: 1994

Headquarters: Athens, Georgia

Estimated Number of Units: 970

Franchise Description: Zaxby's SPE Franchisor LLC is the franchisor. The franchisor grants licenses for quick casual dining restaurant(s) featuring a menu consisting primarily of chicken fingers, buffalo wings, salads, sandwiches, and promotional features, all complimented by an array of unique Zaxby's-brand sauces.
Training Overview: The designated principal, key operator, and three of the certified managers (or four of the certified managers, if the designated principal or key operator will not serve as a certified manager for the restaurant) must attend and successfully complete to the franchisor’s satisfaction the initial management training program. The training program hours take place over four- to eight-week period and will vary depending on the franchisee’s experience and other relevant factors. The classroom portions of the training program are conducted online through Zaxbys University, which is available at all times. The on-the-job training portions of the training program are offered weekly at a certified training facility restaurant that the franchisor will designate. The certified training facility may be located outside of the franchisee’s market. The franchisor also requires all new designated principals and/or key operators to attend the New Franchisee Immersion Program. This course is in addition to and separate from the training program. The franchisor also requires that the designated principal, key operator and managers attend and complete, to its satisfaction, additional special programs or periodic additional training as it may require from time to time upon at least 60 days prior notice. The designated principal and key operator are also required to attend annually up to two meetings of Zaxby’s franchisees upon at least 60 days prior notice.

Territory Granted: Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls. Franchisees will, however, have certain limited protected rights within an area around the restaurant designated by the franchisor, in its sole discretion (the protected area). Within the protected area, the franchisor will not operate, or authorize others to operate, a restaurant within the protected area, except for a “non-traditional outlet.” The franchisor will designate the protected area, in its sole discretion, during the site confirmation process based upon the number of households, traffic count, foot traffic, competition, accessibility of the location, population density and other demographic factors. Because each location is different, the protected area for each restaurant may be different; however, the protected area will typically be a 0.25 mile radius around the restaurant, which is the minimum size that the franchisor will designate for a protected area.

Obligations and Restrictions: Franchisees must devote their best efforts to the efficient and effective management, promotion, and operation of the restaurant. While the franchisor recommends that the designated principal be actively engaged in the operation of the restaurant, it does not require the designated principal or any of the owners to participate personally in the day-to-day operation and on-premises supervision of the restaurant. The designated principal or key operator must have authority over all business decisions related to the restaurant and the power to bind the franchisee in all dealings with the franchisor. At all times that the restaurant is open for business, it must be under the personal, on-premises supervision of a certified manager. Franchisees may offer to customers in the restaurant only the products and services that the franchisor has approved of in writing. In addition, franchisees must offer the specific products and services that the franchisor requires in the manual or otherwise in writing. Franchisees must use the restaurant solely for the operation of Zaxby’s restaurant. Franchisees must keep the restaurant open and in normal operation for such minimum hours and days as the franchisor may periodically prescribe.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years from the opening of the restaurant. Subject to the franchisor’s requirements, it may allow franchisees to renew for one additional successive 10-year term.

Financial Assistance: The franchisor does not offer direct or indirect financing, nor does it guarantee a franchisee’s lease or other obligations. The franchisor participates in the VetFran Program where it offers a 20% discount off of the initial franchise fee owed by qualified veterans of the United States military.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$35,000	$35,000
Lease Deposit and Payment	$10,000	$19,000
Utility Deposits	$0	$9,000
Building	$640,000	$1,300,000
Sitework	$150,000	$990,000
Architect & Engineer	$45,000	$110,000
Permits and Licenses	$2,000	$150,000
Accounting and Legal Fees	$500	$25,000
Furniture, Fixtures & Equipment Package	$445,000	$497,000
Technology System	$60,200	$217,500
Signage	$23,000	$245,000
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
ESTIMATED TOTAL	$1,445,000	$3,810,500

 
Other Fees

Type of Fee	Amount
Royalty	6% of gross sales per week.
Weekly Marketing Contributions	Up to 4% of gross sales per week (which includes the national marketing fund contribution and either the co-op marketing contribution or the multi-DMA advertising contribution, as described).
National Marketing Contribution	Currently, 1.5% of gross sales per week (may be modified by the franchisor in its discretion but will not exceed 3.5% of gross sales).
Co-op Marketing Contribution or Multi-DMA Advertising Contribution	Up to 3% of gross sales per week (as determined by co-op, the franchisor, or its designated affiliate); however, the members of the co-op may vote to increase the co-op marketing contribution above the 3% cap.
Technology Services Fee (TSF)	The then-current TSF.
Supplier Approval	The franchisor’s reasonable cost of the inspection and its actual cost of testing, including personnel and travel costs.
Initial Training for Replacement Managers	The then-current fee. Currently, $2,500 per person.
On-Site Additional or Remedial Training of Consulting Services	Actual travel and living expenses of the franchisor’s 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.
Transfer Fee (Franchise Agreement)	50% of then-current initial franchise fee.
Transfer Fee (Development Agreement)	$7,500
Late Fees and Interest Charge on Late Payments	$100 per week for late royalty and $25 per week for marketing-related fees, plus 18% per annum (or highest rate allowed by law).
Audit Fee	Cost of audit.
Indemnification/ Attorney Fees and Costs/ Damages	Amount of the franchisor’s 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	The franchisor’s actual costs and expenses (including cost of personnel and attorneys’ fees and expenses).
Renewal Fee	50% of then-current initial franchise fee.
Zax Rewardz Program	Currently, $0.075 per dollar of Gross Sales, collected from a Zax Rewardz member.

The above information has been compiled from the FDD of Zaxby’s. Year of FDD: 2025.
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