Zaxby's Franchise Review 2026: Ratings & Verdict

Product details

Product details

Contents

Key facts


The Verdict

Quick Verdict · who it fits

Zaxby's fits first-time franchise buyers looking for a mature food & beverage concept.

✓ Strengths

⚠ Risks to review

Key FDD Facts

The numbers a buyer needs first — straight from the filing.

Initial investment (Item 7)

$1.5M - $3.8M

Franchise fee (Item 5)

$35K

Royalty (Item 6)

6% + 4% ad

Item 19 median rev

$2.78M population not disclosed in this filing

System size (Item 20)

865 +41

Agreement term

10 yrs

Years in business

5+ yrs

Company-owned units

140

Model Zaxby's's costs in the investment calculator → Prefilled from this filing — startup cost, cash flow and break-even.

Buyer qualifications

•No exclusive territory✓Semi-absentee eligible✓No bankruptcy disclosed

Data extracted from the 2026 FDD filed with state regulators. Fees and terms may have changed since filing — request the current FDD from the franchisor before deciding. Not legal, financial, or investment advice. Full disclaimer.

What you'd pay the franchisor

Drag to your projected annual sales. Royalty 6% + ad fund 4% on gross sales.

PROJECTED ANNUAL SALES$2,780,000

$100k$5.1M

Royalty (6%)

—

Ad fund (4%)

—

Total / year

—

▪ Of-sales fees only · excludes rent, labor, COGS, and one-time costs · for illustration

Executive Summary

Free AI summary — the first read on the filing.

Key Numbers

1,005

Total units open

39 franchised units

Units opened last year

41 opened, 8 closed, net +39

8

Units closed last year

+39 units in 2025

Net unit growth

AI Due Diligence Findings PREMIUM

What our analysis flagged across the 2026 filing.

4

Risks to review

4

Strengths identified

3

Questions to ask

Industry Benchmarks

How Zaxby's ranks against 811 Food & Beverage peers we've analyzed.

Initial investment

93rd pct · of 811 peers

Franchise fee

35th pct · of 811 peers

System size

94th pct · of 811 peers

Food & Beverage industry averages

Avg investment

$528K - $1.3M

Avg franchise fee

$38K

Avg system size

235

Franchises analyzed

811

How Zaxby's stacks up

Closest concepts by category and investment.

Brand Item 19 Fee Investment Royalty Units
Zaxby's Disclosed $35K $1.5M - $3.8M 6% 865
Bmb Franchising Services, Inc. (bombshells)Similar price None $50K $2.1M - $3.8M 5.5% 0
Doctor's AssociatesBiggest system None $15K $227K - $630K 8% 18,773
Vintage Hospitality GroupTop-rated in category Disclosed $50K $3.5M - $6.4M 5.5% 33

Compare side-by-side ↗

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Brand Analysis

Zaxby's Franchise Cost: $1.46M In, $2.78M Median Sales

The 2026 Zaxby's SPE Franchisor LLC disclosure prices a restaurant at $1,460,000 to $3,810,500, charges a $35,000 fee and a 6% royalty plus up to 4% for marketing, and reports a $2,783,862 median across 809 franchised restaurants, with four-wall EBITDA by quartile. Here is every Item 7 line, the full fee stack, and what the quartiles mean for payback.

Learn more →

Brand Analysis

Cinnabon Franchise Cost: $196K to $715K, $600,536 Median

The 2026 Cinnabon Franchisor SPV LLC disclosure puts a Full Bakery at $196,250 to $715,100 with a $35,500 fee, and reports a $600,536 median across 189 enclosed mall bakeries.

Learn more →

Brand Analysis

Is Chipotle a Franchise? Why All 4,000+ US Locations Are Corporate

Chipotle reported 4,186 company-operated restaurants and 15 international licensed restaurants as of June 30, 2026. None are franchised, there is no FDD, and there is nothing to apply for. Qdoba is the franchised version of the same order line, and its 12/25 FDD puts a traditional restaurant at $548,100 to $1,294,000.

Learn more →

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Frequently Asked Questions

How much does a Zaxby's franchise cost?

Zaxby's requires a $35,000 initial franchise fee and a total initial investment range of $1,460,000–$3,810,500, per the most recent FDD on file.

Who owns Zaxby's?

Zaxby's franchises are sold by Zaxby's SPE Franchisor LLC, the franchisor entity of record on its Franchise Disclosure Document. Item 1 of the FDD discloses the corporate structure, including any parent companies and predecessors.

Does Zaxby's disclose financial performance (Item 19)?

Yes. Zaxby's discloses Item 19 financial performance representations with reported revenue around $2,783,862. See the financials sub-page for the full distribution.

What ongoing fees does Zaxby's charge?

Franchisees pay a royalty of 6% and an advertising fund contribution of 4% on gross sales as defined in Item 6 of the FDD.

How many Zaxby's locations are there?

As of their 2026 FDD, Zaxby's has 865 total locations, with 41 new locations opened in the most recent reporting year. This information comes from Item 20 of the FDD.

Does Zaxby's grant exclusive territory?

No. Zaxby's does not grant exclusive territory rights under Item 12. The franchisor retains the right to operate or grant additional units inside or adjacent to your trade area.

What are the renewal and exit terms?

Per the FDD, Zaxby's discloses an initial agreement term of 10 years. Review Items 10 and 17 for the full renewal and termination provisions.

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