Zaxby's Franchise: Cost, Royalties, and What Owners Earn

Zaxby's: A Regional Champion Expanding Carefully

Zaxby's is a Georgia-based chicken franchise with ~900 locations concentrated heavily in the Southeast US — Georgia, Alabama, Tennessee, South Carolina, North Carolina, and Florida. The brand's AUV is among the highest in the chicken QSR category, partially because of its loyal Southeast customer base and college-town footprint.

The brand positions itself between fast food and fast casual — higher quality than traditional QSR chicken, dine-in focused, with strong sports bar adjacency (many locations near college campuses and SEC football markets).

Investment Breakdown

**Franchise fee:** $35,000 per location. Multi-unit development agreements (5+ locations) can reduce per-unit fees.

**Build-out:** $350,000–$1,200,000. Zaxby's typically requires a freestanding or end-cap format with a drive-through. Second-generation restaurant conversions reduce build-out cost significantly.

**Equipment:** $100,000–$200,000.

**Pre-opening training and travel:** $5,000–$15,000.

**Grand opening marketing:** $10,000–$30,000.

**Working capital:** $20,000–$50,000.

**Total investment (FDD range):** $517,000–$1,727,000. Most locations open in the $700,000–$1,100,000 range.

Ongoing Fees and Unit Economics

**Royalty:** 6% of net sales weekly.

**Brand fund:** 1.5% of net sales — lower than most QSR brands.

**AUV:** ~$2.2M for franchised locations per Item 19. Top-quartile locations near major college campuses can exceed $3M annually.

**EBITDA margins:** 16–22%. At $2.2M AUV and 19% margin: **$418,000/year** pre-debt-service.

**Debt service:** On a $900,000 SBA loan at 10.5% over 10 years: ~$12,100/month = $145,200/year.

**Net to owner:** ~$273,000/year at median performance.

**Geography risk:** Zaxby's brand recognition outside the Southeast is meaningfully lower. Franchisees in new markets face higher ramp periods. Validate brand awareness in your target market before committing.

*"One franchisor at the Expo was doing a live product demo while every competitor handed out brochures. His booth was the busiest in the hall."* — ScoreVet field notes

Location: The SEC Market Advantage

Zaxby's highest-performing locations share a cluster of characteristics: - Proximity to college campuses or large universities — the brand's core demographic is 18–35 - Sports bar adjacency — game-day traffic is a meaningful revenue driver - Suburban arterial road visibility with drive-through access - Southeast geography where brand recognition reduces marketing friction

ScoreVet's Youth Density Score evaluates the under-35 population concentration and university proximity for any target address — giving you an independent read on whether the trade area matches Zaxby's performance profile.

Frequently Asked Questions