Zaxby's

Item 7 in the 2025 FDD pegs total investment at $1,445,000 to $3,810,500 for a single unit, including the $35,000 franchise fee, driven by build-out, equipment, and inventory in the drive-thru heavy model. Ongoing fees hit 6% royalty on gross sales, 1.5% brand fund (potentially up to 4% with local co-op), plus a $0.06 per transaction tech fee—standard for QSR but cumulative on $1M+ sales volumes. No Item 19 means no median gross sales or profit data, a red flag forcing reliance on anecdotes; SBA records show 134 loans averaging $1,320,917 with a stellar 1.5% default rate, suggesting financed owners are repaying reliably despite the hefty upfront capital.

Since 1994, Zaxby's grew steadily to 826 franchised units (143 corporate) by 2024, up 4% from 796 in 2023, with 50 projected openings signaling controlled expansion. Health metrics shine: only 6 terminations and 58 transfers indicate stability, not distress. This trajectory means a mature brand with barriers to oversaturation, but the lack of earnings transparency and $1.4M+ entry could strain underperformers—ideal for experienced operators with deep pockets eyeing chicken's demand, less so for newcomers without proven QSR chops.