ZAXBY’S Franchise Cost and Profit

ZAXBY’S requires a total initial investment of $1.4M to $3.8M (midpoint approximately $2.6M), with an initial franchise fee of $35K. The ongoing fee burden is 10% (6% royalty plus 4% advertising fund). This is below the industry average of approximately 14.2%, leaving more margin for the operator.

According to Item 19 of the 2025 FDD, the median revenue for ZAXBY’S locations is $2.7M. The implied franchisee EBITDA is approximately $80K, based on the margin assumptions disclosed in the FDD. The estimated cash-on-cash return is 3.0% with a payback period of approximately 33.0 years.

ZAXBY’S operates approximately 20 franchised units. The brand is growing, with a 90.9% net unit increase year-over-year, indicating franchisee demand and system health. The SBA 7(a) loan default rate of 2.1% is well below the industry average of approximately 9.4%, indicating strong franchisee financial outcomes.

Prospective franchisees should verify all figures against the most recent FDD, conduct validation calls with multiple existing franchisees, and consult with a franchise attorney before signing any agreement.