Zaxby's Franchise Review 2026: Ratings & Verdict

Product details

Product details

Contents

Key facts


The Verdict

Quick Verdict · who it fits

Zaxby's SPE Franchisor LLC 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

System size (Item 20)

865 +41

Agreement term

10 yrs

Years in business

5+ yrs

Company-owned units

140

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 561 Food & Beverage peers we've analyzed.

Initial investment

93rd pct · of 561 peers

Franchise fee

37th pct · of 561 peers

System size

90th pct · of 561 peers

Food & Beverage industry averages

Avg investment

$594K - $1.4M

Avg franchise fee

$44K

Avg system size

346

Franchises analyzed

561

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
Tim Ho Wan International Pte.Similar price None $86K $3.2M - $3.8M 3% 6
Doctor's AssociatesBiggest system Disclosed $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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Frequently Asked Questions

How much does a Zaxby's SPE Franchisor LLC franchise cost?

Zaxby's SPE Franchisor LLC 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.

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

Yes. Zaxby's SPE Franchisor LLC discloses Item 19 financial performance representations in its FDD. See the financials sub-page for the disclosed figures.

What ongoing fees does Zaxby's SPE Franchisor LLC 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 SPE Franchisor LLC locations are there?

As of their 2026 FDD, Zaxby's SPE Franchisor LLC 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 SPE Franchisor LLC grant exclusive territory?

No. Zaxby's SPE Franchisor LLC 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 SPE Franchisor LLC discloses an initial agreement term of 10 years. Review Items 10 and 17 for the full renewal and termination provisions.

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