One food chain considered a rising star in the quick-service restaurant industry is Zaxby’s. Known for their chicken wings, chicken fingers, and signature sauces, Zaxby’s grown to over 900 locations for over 30 years.
Zaxby’s Franchise Wiki
Zaxby’s started in Statesboro, Georgia in 1990. Founders Tony Townley and Zach McLeroy invested $16,000 to open the first Zaxby’s with McLeroy selling his drum kit to help with the expenses.
The concept of Zaxby’s was to sell delicious chicken and sauces. Zaxby’s was an instant hit in Statesboro though it took them 4 years to add another location which was in Kentucky. At present, Zaxby’s has over 900 locations all located in the United States.
Zaxby’s menu consists of chicken wings, chicken tenders, chicken sandwiches, salads, sides, desserts, and drinks. But out of all the items on their menu, it’s Zaxby’s signature sauces that have become popular among their loyal followers.
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Zaxby’s Franchise Benefits
Zaxby’s is considered a big name in the quick service industry which means there are a lot of advantages you can expect when you franchise with them. Here are a few:
As a Zaxby’s franchisee, you’ll be receiving a few perks. One of them is attending annual conferences hosted by Zaxby’s. These are often held at world-class resorts where you get to meet other franchisees all over the United States. Here, you’ll be able to broaden your network, exchange strategies, and discuss ideas with a lot of people. It will also be a nice vacation for the family. These annual conferences are a form of encouragement and support for fellow Zaxby’s franchisees. It’s also a way for franchisees to learn how to grow and better manage local chains.
With this kind of conference, you’ll know you have the support of Zaxby’s when it comes to running your franchise as well as the encouragement from entrepreneurs with the same mission as you. This also makes you feel like you are part of a big family which helps boost camaraderie and unity within the Zaxby’s business circle.
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As mentioned above, Zaxby’s is a big name in the chicken business. Their competitors are big time business chains such as Chick-fil-A, El Pollo Loco, and Popeyes. With this fact, you don’t have to worry about not having a lot of customers. The name and legacy that Zaxby’s has built through the years will have many flock to either try you out for the first time or keep on returning for those signature chicken wings and sauces.
Zaxby’s has been around for 30 years selling their famous chicken and sauces. Aside from that, they’ve reached over 900 locations in 17 states. They’re also known for their billion-dollar system-wide revenues. This is an achievement that few restaurant chains can claim.
A brand with such a stable and strong presence in the food industry is something you’ll be proud of and can trust when you decide to franchise with them.
Challenges of a Zaxby’s Franchise
Despite having so many advantages listed above, Zaxby’s still has some challenges when it comes to franchising with them. Here are a few you can expect.
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One might think “Oh, I can eat a salad at Zaxby’s so it’s healthier.” And though that may be true, some of the salad options there are still quite unhealthy. Take the Fried Cobb Salad for instance. The salad contains 820 calories and 1,970 mg of sodium. More if you add too much salad dressing. And that’s not all. Even their grilled chicken sandwich packs in 1,510 mg of sodium.
Though you may not have any control as to what items are served at Zaxby’s, you’ll have to realize that the truly health conscious crowd won’t be a part of your target market. Based on the annual sale figures of this restaurant that’s probably okay.
No Global Presence
With over 30 years in the business, it’s still surprising that Zaxby’s hasn’t tried to branch outside of the United States like their competitor Popeyes has. They have over 900 locations but no franchisees can be found in Canada or even Mexico.
Zaxby’s has potential outside of the United States and we hope they would consider franchising globally soon.
Zaxby’s Franchise Cost
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These are the financial details that Zaxby’s require if you’re interested in franchising with them:
|Fees / Expenses||Financial Amount|
|Total Investment||$351,000 to $718,500|
In addition, the franchise requires a royalty fee of 6% and ad royalty fee of an additional 2.87 to 5%. Be sure to get clear on the ad royal fee percentage prior to signing a franchise agreement. A 2% difference annually may not sound like much, but it could result in thousands of dollars of lost profits over the course of a year.
As for the liquid capital, Zaxby’s defines this as cash or assets that can be converted to cash in 10 business days. The term of agreement to run a unit is 10 years
Zaxby’s Franchise Requirements
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This is highly confidential information. Because this company had not disclosed it. You can only know about this after applying for the franchise. All this will be discussed when the basic criteria are met and fulfilled. You can know the procedure as follows.
Zaxby’s looks for the following criteria in franchise applicants:
- Ability to satisfactorily pass background checks for the following: reasonable credit worthiness, no criminal convictions, no history of extensive litigation, and satisfactory motor vehicle report.
- Willingness of all investors to personally guarantee any obligations that are required under the license agreement.
- Willingness to make a commitment to this venture within 60 – 90 days of signing a license agreement.
- Belief that guest service is of critical importance in restaurant operations.
Zaxby’s is currently headed by their co-founder and CEO Zach McLeroy. Zaxby’s headquarters is located in Athens, Georgia. The chain has won numerous awards for their chicken such as winning Thrillist’s Best Fried Chicken Sandwich category. They’re also awarded by Forbes as one of America’s Best Large Employers in 2021 beating out big competitors Chick-fil-A, Raising Cane’s Chicken Fingers, and even Wendy’s.
Zaxby’s Franchise Profit
Zaxby’s system-wide revenue for the year 2020 was $1.996 billion. This was an increase in revenue from 2019 which came in at $1.886 billion.
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Considering the system-wide revenue of Zaxby’s in 2020, we estimate the average sales per unit of $2,121,147. This is a fantastic average revenue number for a chicken restaurant. For comparison purposes, Popeyes only brings in an average of $1.2 million annually per unit.
Franchise revenue depends on a wide range of factors, as does profit. How much money you can make from any franchise depends on a number of specific factors such as franchise location, labor costs, commercial lease rates and a number of other factors.
Is the Zaxby’s Franchise Right For You?
Will Zaxby’s be profitable for you? According to some estimates, you may get a 27% return per year on your investment. But do keep in mind this depends on a lot of factors such as location and competition within the area. We advise discussing your options with a financial advisor and thoroughly read and understand the terms of the franchise disclosure document before signing up to become a franchisee.
With over 30 years in the business, Zaxby’s has proven they’re here to stay. The restaurants menu options are as desirable today as they were 3 decades ago.
If you’re going to get into a food business, it would make sense to franchise from the top leading chains in the United States. This gives you assurance that you’re partnering with a business that’s stable, credible, and also has a name that everyone is familiar of so you don’t have to worry whether you’ll receive enough customers when you do decide to bring the business to your area.
What is an alternative Zaxby’s franchise?
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If it’s a famous chicken place you’re looking for, check out Popeyes. They have over 3,000 units and can be found internationally. They’re known for their fried chicken and their chicken sandwiches.
To franchise Popeyes, be prepared to invest between $383,500 and $2,620,800.
Did this guide help you? I hope this was able to help you make a decision as to whether or not Zaxby’s is the right franchise for you.
How to Apply For Zaxby’s Franchise
To get the franchise first you have to fill the form. Then the company officials will contact you for further details. After that you you can open this franchise.
Zaxby’s Franchise Contact details
Is it profitable or not?
Ans: It is fast moving consumer good products, so there is fewer margins but your sale is too high. So, obviously you can make more profit from this business
So far we have shared the basics for this franchise. It is the most profitable franchise. You will never doubt your decision to start this franchise. Go ahead and achieve your goal. If you find more information please feel free to share with us. Share your thoughts and we will definitely contact you with new franchise and opportunities. Stay Tuned for more franchise. Thank you
Disclaimer: The information given in this article like investment may varry from place to place, so we are not sure about the investment part.
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