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Zaxby's Franchising

Franchise

Zaxby’s is a chain of casual dining fast food restaurants located predominately in the Southeast. The eatery’s slogan is “Real Chicken” and its most popular dishes feature chicken (such as buffalo wings and chicken fingers), though the menu also features fries, sandwiches, and salads known as “zalads”. All meals are prepared to order. Zaxby’s is also popular for their 10 dipping sauces. In addition to teriyaki, BBQ, hot honey mustard, and sweet & spicy, there are several more that range in their degree of spiciness. Restaurants are decorated with odd yet fun objects that represent something unique to its immediate location be it a college sports team’s merchandise or the area’s most common farming crop.

Facts & Figures

Liquid capital required
$500,000
Net worth required
$700,000
Investment
$284,000 - $664,300
Franchise fee
$35,000

The FranchiseHelp Brief

What is it?
  • A chicken chain that has a small business concept with significant resources to create a 'Zmall business'
  • The home of indescribably good chicken, wanting to create encore expeirences that enrich lives
How does it make money?
  • Sells fried chicken, sandwiches, salads, appetizers and more
  • Caters food for events
  • Runs a drive-through
Who is it for?
  • Someone who's ready to embrace the mission of enriching lives by creating dining experiences that demand an encore
  • Dedicated entrepreneurs who want a business with a family culture in a closely knitted community
  • Driven individuals who can maage a team running a full-service restaurant with indoor and drive-through options
What would you do as a franchisee?
  • Make and sell Zaxby's chicken and other food like sandwiches, salads and appetizers
  • Meet orders from catering requests or drive-throughs
  • Attend the annual Zaxby's conference to exchange ideas, discuss strategies and network in a refreshing environment

Overview

Owners must go through a two-month training program before opening their own restaurant, as well as attend semiannual franchisee conferences. Although owners are not required to work in the restaurant, at least one person with a stake of 25% or greater must act as the “Designated Principal” of the fast food location and monitor the business each day.

Zaxby’s Franchise Opportunities - History

CEO Zach W. McLeroy founded Zaxby’s in 1990, with no intention of expanding his business. His restaurant proved so popular, however, that after just four years, he began to franchise. Comprised mainly of franchise locations, Zaxby’s now has over 500 locations.

Zaxby’s Franchise Cost / Initial Investment / Zaxby’s Franchise Income

Zaxby’s franchise fee is $35,000 per restaurant. Franchisees are expected to have a net worth exceeding $700,000, with more than half of that in liquid assets. The initial investment ranges somewhere between $284,000 and $664,300. An ongoing 6% royalty fee of net sales is also applied.

Zaxby’s Business Opportunities: Other Information

One of Zaxby’s primary marketing strategies is by aligning itself with NASCAR. For several years, Zaxby’s has sponsored a driver on the circuit. Celebrities like Penny Marshall, Kathy Griffin, Evander Holyfield, and Jerry Rice have all appeared in Zaxby’s television commercials, as well.

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