Zaxby's franchise cost per the 2026 FDD: $1,460,000 to $3,810,500, a $35,000 fee, 6% royalty, and a $2,783,862 median across 809 franchised restaurants.
Quick answer A Zaxby's restaurant costs $1,460,000 to $3,810,500 to open per Item 7 of the 2026 FDD, including the $35,000 initial franchise fee, assuming you lease the land. The royalty is 6% of gross sales plus up to 4% for marketing. Median 2025 gross revenue was $2,783,862 across 809 franchised restaurants.
Zaxby’s SPE Franchisor LLC prices a new restaurant at $1,460,000 to $3,810,500 in Item 7 of its 2026 Franchise Disclosure Document (issuance date April 24, 2026, pages 17 to 21). Of that, $40,200 to $45,000 goes to the franchisor or its affiliates: the $35,000 fee plus an initial marketing contribution.
Zaxby’s is one of the few chicken franchisors that publishes cost data alongside sales. Item 19 reports a $2,783,862 median across 809 franchised restaurants and four-wall EBITDA by quartile. That makes it possible to do something most brand cost posts cannot: put the build cost next to what a restaurant in each quartile actually clears.
| Item 7 line | 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 and engineer | $45,000 | $110,000 |
| Permits and licenses | $2,000 | $150,000 |
| Accounting and legal | $500 | $25,000 |
| Furniture, fixtures and equipment package | $445,000 | $497,000 |
| Technology system | $75,000 | $217,500 |
| Signage | $23,000 | $245,000 |
| Insurance | $1,000 | $17,000 |
| Printing and 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 |
| Total | $1,460,000 | $3,810,500 |
The low-column lines as printed add to $1,459,500. The FDD states the total as $1,460,000, and we use the stated figure throughout.
Building and sitework explain most of it. Building runs $640,000 to $1,300,000 and sitework $150,000 to $990,000. Notes 4 and 5 say the low ends reflect converting an existing freestanding building, while the high ends reflect a new ground-up build. Those two lines alone swing $1.5 million.
The rest of the spread is in signage ($23,000 to $245,000, with interstate-type signage the expensive case), permits and impact fees (up to $150,000), and technology ($75,000 to $217,500 for POS, drive-thru equipment, interior and exterior digital menu boards and ordering kiosks).
The equipment package is the tightest line: $445,000 to $497,000. Whatever you build, the kitchen and dining room cost about the same.
Note 2 sets the footprint: a drive-thru restaurant of 1,100 to 3,500 square feet on a lot of 0.72 to 1.5 acres. The total assumes you lease the land and the landlord does not pay for improvements. Two alternative structures change the math:
The additional funds line is thin at the low end. $1,000 for three months of working capital is not a realistic reserve for a restaurant with Item 19 labor costs of $500,000 a year and up. Plan from the $96,000 high end or above. Our Item 7 guide covers how to read working capital lines.
Item 5 (pages 8 to 10) sets the initial franchise fee at $35,000, payable when you sign the Franchise Agreement. If you cannot find an acceptable site and are not under a development agreement, Zaxby’s refunds 50% on a mutual termination and release. In fiscal 2025, fees actually collected ranged from $0 to $35,000, so discounts are real.
Two Development Incentive Programs refund the whole fee at opening and cut the royalty:
| Program | Who qualifies | Royalty year 1 | Royalty year 2 | Then |
|---|---|---|---|---|
| New Restaurant Opening Incentive | Signed, with real estate approval, by June 30, 2025; open in a Core Market by December 31, 2026 | 2% | 4% | 6% |
| Select Market Incentive | Open outside the eight Core Market states, or in the Fort Myers, West Palm Beach or Miami DMAs, by December 31, 2028 | 0% | 3% | 6% |
The Core Markets are Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina and Tennessee. The first program’s approval deadline has passed, so for a new buyer in 2026 the live offer is the Select Market program, which steers development toward newer markets.
Other Item 5 fees:
See the full Zaxby’s data sheet
Item 6 (pages 11 to 17) is weekly. Every Monday, Zaxby’s debits the prior week’s fees.
| Item 6 fee | Amount |
|---|---|
| Royalty | 6% of weekly Gross Sales |
| Weekly marketing contribution, total | Up to 4% of Gross Sales |
| National Marketing Contribution (within the 4%) | 2.0% now, rising to 2.5% on December 28, 2026; capped at 3.5% |
| Co-op or Multi-DMA contribution (within the 4%) | Up to 3%; co-op members can vote higher |
| Technology Services Fee | $0.06 per transaction; rate fixed until December 31, 2028 |
| Zax Rewardz loyalty program | $0.075 per dollar of Gross Sales from Zax Rewardz members |
| Transfer fee (Franchise Agreement) | 50% of the then-current initial franchise fee |
| Transfer fee (Development Agreement) | $7,500 |
| Renewal fee | 50% of the then-current initial franchise fee |
| Replacement manager training | $2,500 per person |
| Late fees | $100 per week on royalty, $25 per week on marketing fees, plus 18% interest |
At the $2,783,862 median, 6% royalty is $167,032 a year and the 4% marketing ceiling adds $111,354, for $278,386 combined before technology and loyalty fees.
Two lines need attention. The Zax Rewardz charge is 7.5 cents on every dollar a loyalty member spends, debited from those sales and funded back to restaurants as points are redeemed. The more your sales shift to app members, the more that line matters. And the national fund step-up to 2.5% is already written into the 2026 FDD, with room to go to 3.5%. Our technology fees explainer covers how per-transaction fees compound.
Item 19’s cost table shows royalties averaging 5.3% to 5.8% of revenue by quartile, below the 6% headline, which is consistent with incentive and older agreement rates in the measured group. A new agreement outside the incentive programs pays 6%.
Item 19 (pages 52 to 56) has three tables. All are historical, based on franchisee sales reports and POS polling, and not independently verified.
The measured group is franchised restaurants open the whole fiscal year (December 30, 2024 to December 28, 2025). It excludes the 140 affiliate restaurants, 9 franchised restaurants closed for more than a month, 41 that opened during the year, 8 that closed and 6 that changed ownership from the affiliate.
| Quartile | Restaurants | Average | Median | Low | High |
|---|---|---|---|---|---|
| Top | 202 | $3,997,593 | $3,875,114 | $3,337,346 | $6,882,505 |
| Second | 202 | $3,044,993 | $3,029,791 | $2,791,338 | $3,335,995 |
| Third | 202 | $2,509,825 | $2,507,805 | $2,240,974 | $2,783,862 |
| Bottom | 203 | $1,841,948 | $1,928,216 | $936,049 | $2,237,135 |
| All | 809 | $2,847,345 | $2,783,862 | $936,049 | $6,882,505 |
384 restaurants (47.5%) beat the average. The median sitting close to the mean says the distribution is not badly skewed by a few outliers.
The second table covers 563 restaurants whose financials had been submitted. Its heading calls them affiliate restaurants while its text describes franchisee-submitted financials for “Franchise Restaurants,” so ask Zaxby’s to confirm which population it is.
| Per restaurant, fiscal 2025 | Top | Second | Third | Bottom |
|---|---|---|---|---|
| Restaurants | 140 | 141 | 141 | 141 |
| Average gross revenue | $4,045,705 | $3,094,238 | $2,557,665 | $1,891,062 |
| Cost of goods sold | 30.2% | 30.0% | 30.5% | 30.8% |
| Labor | 23.0% | 24.2% | 25.5% | 27.2% |
| Royalties | 5.8% | 5.7% | 5.6% | 5.3% |
| Advertising | 3.6% | 3.6% | 3.6% | 3.7% |
| Other operating expenses | 12.6% | 13.5% | 14.4% | 17.0% |
| Four-wall EBITDAR | $1,006,142 | $713,604 | $520,782 | $301,696 |
| Location expense (rent) | $187,543 | $180,306 | $172,894 | $160,672 |
| Four-wall EBITDA | $818,599 (20.2%) | $533,297 (17.2%) | $347,887 (13.6%) | $141,024 (7.5%) |
| Median EBITDA | $773,586 | $526,552 | $345,469 | $138,808 |
Rent is nearly fixed, between $160,672 and $187,543 across quartiles, while revenue swings by more than $2 million. That is why margin falls from 20.2% to 7.5%: the bottom quartile carries almost the same occupancy and a heavier labor share on half the sales. Note 2 says the table is not a profit and loss statement and excludes debt payments, interest, depreciation and replacement equipment.
What that means for payback. A bottom-quartile restaurant’s $141,024 of EBITDA against a $1,460,000 low-end build is roughly a ten-year simple payback before debt service and taxes. A second-quartile restaurant’s $533,297 against the same build is under three years. Against the $3,810,500 high end, even the top quartile’s $818,599 needs nearly five. Which quartile your site lands in decides the deal more than the fee schedule.
| Fiscal year | Restaurants | Average | Change | Median |
|---|---|---|---|---|
| 2023 | 768 | $2,721,224 | +2.2% | $2,651,111 |
| 2024 | 776 | $2,782,488 | +2.6% | $2,710,374 |
| 2025 | 809 | $2,847,345 | +2.4% | $2,783,862 |
Steady low-single-digit growth, roughly in line with menu-price inflation, and a sample that grew as new units matured. For how to read exclusions like these, see Item 19 explained.
Compare Zaxby’s financial disclosures
Item 20 (pages 57 to 62) labels every company unit as affiliate-owned. The franchisor itself has never operated a restaurant.
| Outlet type | Start of 2023 | End of 2023 | End of 2024 | End of 2025 |
|---|---|---|---|---|
| Franchised | 776 | 796 | 826 | 865 |
| Affiliate-owned | 146 | 145 | 143 | 140 |
| Total | 922 | 941 | 969 | 1,005 |
Franchised movement by year:
| Year | Opened | Terminated | Not renewed | Ceased other | Acquired from affiliate |
|---|---|---|---|---|---|
| 2023 | 26 | 6 | 0 | 0 | 0 |
| 2024 | 37 | 6 | 0 | 0 | 0 |
| 2025 | 41 | 6 | 1 | 1 | 6 |
Six terminations a year on a base above 775 is a low exit rate. The affiliate side opened 6, closed 3 and sold 6 to franchisees in 2025 (5 in Texas, 1 in Tennessee).
The pipeline is large. Item 20 lists 149 franchise agreements signed but not opened and projects 62 new franchised and 7 affiliate openings in fiscal 2026. Arizona (13 signed), Florida (19), Georgia (15), North Carolina (13) and Virginia (12) carry the most.
Transfers are the number to watch. Franchisee-to-franchisee transfers ran 27 in 2023, 58 in 2024 and 62 in 2025. Tennessee accounted for 25 in 2025 and Georgia for 16, after Alabama (18) and South Carolina (20) led in 2024. Multi-unit portfolios changing hands in blocks is the likely pattern. The FDD does not explain them, and the sellers are listed in Exhibit D-3.
Item 20 also discloses that some franchisees have signed confidentiality provisions, and it names an independent association, the Z Franchisee Association, Inc. in Kennesaw, Georgia. Call it.
Zaxby’s sits in the full-size, drive-thru tier of the chicken franchise category.
| Brand | Item 7 range | Item 19 median (2026 FDD) | Basis |
|---|---|---|---|
| Zaxby’s | $1,460,000 to $3,810,500 | $2,783,862 gross revenue | 809 franchised, fiscal 2025 |
| Bojangles | $2,851,880 to $3,951,200 | $2,125,407 gross sales | 487 franchised full-size, bone-in menu |
| Slim Chickens | $1,188,900 to $4,944,000 | $2,240,967 gross sales | 166 restaurants |
| Popeyes | $504,545 to $3,923,245 | $1,785,736 sales | 2,248 franchised free-standing |
| Wingstop | $310,400 to $1,048,500 | $1,890,866 net sales | 2,116 franchised |
On disclosed medians, Zaxby’s leads every full-size chicken brand in the table, on a sample of 809 restaurants. It also carries the heaviest fee load: 6% royalty plus up to 4% marketing, against 5% at Popeyes. Wingstop is a different business, a small-box, wing-focused format at roughly a quarter of the capital. The best chicken franchises ranking puts all of them side by side, and the Popeyes cost breakdown and Wingstop cost breakdown go deeper on the closest alternatives. For the wing-only field, see best wing franchises.
Get the full Zaxby’s FDD analysis
Get the full 12-section FDD analysis — $49
Real franchise data, real Item 19 numbers, personalized to your capital and location. Comparing 2–3 brands? The 3-pack is $99.
Browse franchises · pick your brand Or see a real sample report →
Take the Zaxby's numbers with you.
We'll email you the Zaxby's FDD data sheet: a one-page PDF with the Item 7 investment range, initial franchise fee, royalty, and the Item 19 revenue headline. No spam, unsubscribe anytime.
✓ Check your inbox
The Zaxby's data sheet is on its way.
The only franchise report written entirely for the buyer. 12 sections covering financial risks, legal obligations, and a personalized recommendation.
Browse Franchise Library See a real sample report →
$49 per brand · $99 for a 3-brand pack
zaxbys franchise costzaxbys franchisezaxbys franchise feechicken franchiseZaxby's SPE Franchisor LLCitem 19item 7
About this analysis The franchise data in this article is drawn from VetMyFranchise's structured analysis of 2,300+ Franchise Disclosure Documents filed with U.S. state regulators. See our data & methodology.
Item 7 of the 2026 Zaxby's FDD estimates $1,460,000 to $3,810,500 for one restaurant, including the $35,000 franchise fee. The biggest lines are building at $640,000 to $1,300,000, sitework at $150,000 to $990,000, and the furniture, fixtures and equipment package at $445,000 to $497,000. The estimate assumes you lease the land. If you buy it, Note 2 puts unimproved real estate at $400,000 to $1,800,000 on top.
The initial franchise fee is $35,000 (Item 5). Fees actually collected in fiscal 2025 ranged from $0 to $35,000. Qualifying new restaurants under the New Restaurant Opening Incentive or the Select Market Incentive get the fee refunded at opening. Veterans receive a 20% VetFran discount, which the FDD states as $7,000.
The royalty is 6% of weekly Gross Sales. Weekly marketing contributions run up to 4% of Gross Sales: a national fund contribution currently at 2.0% (rising to 2.5% on December 28, 2026, capped at 3.5%) plus a co-op or Multi-DMA contribution of up to 3%. Incentive programs cut the royalty to 2% then 4%, or 0% then 3%, for the first two years of a qualifying new restaurant.
Per Item 19 of the 2026 FDD, the 809 franchised restaurants open all of fiscal 2025 averaged $2,847,345 in gross revenue, with a median of $2,783,862. Quartile averages ranged from $1,841,948 at the bottom to $3,997,593 at the top. Across 563 restaurants that submitted financials, average four-wall EBITDA after rent was $141,024 in the bottom quartile, $347,887 in the third, $533,297 in the second and $818,599 in the top. That figure is before debt service, depreciation and taxes.
Item 20 reports 1,005 restaurants at the end of fiscal 2025: 865 franchised and 140 operated by the affiliate Zaxby's Company Restaurants LLC. The franchisor itself has never operated a restaurant.
The franchisor is Zaxby's SPE Franchisor LLC, a Delaware company formed April 13, 2021 as part of a securitization. Its ultimate parent is Craveability Parent LLC, which Item 1 says is owned by investment funds managed by affiliates of the Merchant Banking business of The Goldman Sachs Group Inc.
Item 11 says the typical time from signing the Franchise Agreement to opening is 12 to 24 months, depending on site approval, lease negotiations, permits and construction. Missing the agreement's real estate approval, construction start or opening deadline is grounds for termination.
This page is part of VetMyFranchise. View all pages: llms.txt · llms-full.txt