Zaxby’s Franchise (Costs + Fees + FDD) | Franchise Direct

Year Business Began : 1990 Franchising Since : 1994 Headquarters : Athens, Georgia Estimated Number of Units : 910

Franchise Description : Zaxby ‘s SPE Franchisor LLC is the franchisor. The franchisor grants licenses for quick casual boom restaurant ( s ) featuring a menu consisting primarily of chicken fingers and buffalo wings, and an assortment of salads and sandwich baskets, all complimented by an array of unique Zaxby’s-brand sauces.

Training Overview : The intend star and three of the certifiable managers ( or four of the certified managers, if the designated principal will not serve as a certifiable director for the restaurant ) must attend and successfully complete to the franchisor ’ s atonement the initial management train platform. The trail platform consists of : ( i ) phase one, the restaurant basics ; ( two ) phase two, core management train ; and ( three ) phase three, culture and leadership fundamentals. only the designated star must complete phase three. The classroom portions of phase one and phase two are conducted online through Zaxby ’ randomness University, which is available at all times. Phase three is offered every two or three weeks at the franchisor ’ south corporate offices in Athens, Georgia or, at its exclusive choice, online through Zaxby ’ second University. The on-the-job train portions of phase one and phase two are offered weekly at a certify coach facility restaurant that the franchisor will designate, which may be operated by its franchisees or its affiliates. The franchisor besides requires that four certified managers attend and accomplished, to its satisfaction, extra particular programs or periodic extra train as it may require from time to time upon at least 60 days prior notice. The destine star is besides required to attend annually up to two meetings of Zaxby ’ mho franchisees upon at least 60 days prior notice. Territory Granted : Franchisees will not receive an exclusive territory. Franchisees may face contest from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls. Franchisees will, however, have certain limited protect rights within an area around the restaurant designated by the franchisor, in its sole free will ( the protected area ). Within the protected sphere, the franchisor will not operate, or authorize others to operate, a restaurant within the protect area, except for a non-traditional exit. A non-traditional exit is a restaurant that is located at or operated from a non-traditional site, including public fare facilities, sports arenas, stadiums, gasoline service stations, highway rest stops, entertainment or tourist facilities, malls, military bases, and more.

Obligations and Restrictions : Franchisees must devote their best efforts to the effective and effective management, promotion, and operation of the restaurant. While the franchisor recommends that the designated principal be actively engaged in the operation of the restaurant, it does not require the indicate principal or any of the owners to participate personally in the daily operation and on-premises supervision of the restaurant. The destine chief must have authority over all clientele decisions related to the restaurant and the power to bind the franchisee in all dealings with the franchisor. At all times that the restaurant is open for business, it must be under the personal, on-premises supervision of a certifiable director. Franchisees may offer in the restaurant to customers only the products and services that the franchisor has approved in writing. In accession, franchisees must offer the specific products and services that the franchisor requires in the manual or differently in writing. Franchisees must use the restaurant entirely for the mathematical process of the system restaurant. Term of Agreement and Renewal : The length of the initial franchise term is 10 years from the open of the restaurant. capable to the franchisor ’ mho requirements, it may allow franchisees to renew for one extra consecutive 10-year term.

Financial Assistance : The franchisor does not offer target or indirect finance, nor does it guarantee a franchisee ’ randomness lease or other obligations .Investment Tables:

Estimated Initial Investment
Name of Fee Low High
Initial Franchise Fee $35,000 $35,000
Lease Deposit and Payment $10,000 $19,000
Utility Deposits $0 $9,000
Initial Inventory $5,000 $20,000
Furniture, Fixtures & Equipment $214,000 $313,000
Technology System $30,500 $33,500
Signage $25,000 $50,000
Initial Marketing Contribution $5,200 $10,000
Insurance $1,000 $17,000
Permits and Licenses $2,000 $24,000
Accounting and Legal Fees $500 $25,000
Printing/Business Supplies $300 $1,000
Uniforms $1,500 $4,000
Training Expenses $10,000 $25,000
Pre-Opening Payroll $10,000 $37,000
Additional Funds (3 months) $1,000 $96,000
ESTIMATED TOTAL $351,000 $718,500

Other Fees
Type of Fee Amount
Royalty 6% of gross sales per week.
National Marketing Contribution 1.37% of gross sales per week (may be increased or decreased by the franchisor within a range between 0.75% and 1.5% of gross sales, in the franchisor’s discretion).
Co-op Marketing Contribution or Multi-DMA Advertising Contribution 1.5% to 3.5% of gross sales per week (as determined by co-op, the franchisor or its designated affiliate).
Extension Fee $1,000 for each month (or portion of a month) that a deadline is extended.
Accounting Services Fee (i) $650 per month for bookkeeping services and payroll processing services,
(ii) $475 per month for either bookkeeping services only or payroll processing services only,
(iii) $225 per month for accounts payable services (only available if franchisees also pay for bookkeeping services), and/or
(iv) $15 annually per employee for Affordable Care Act reporting.
Supplier Approval The franchisor’s reasonable cost of the inspection and its actual cost of testing, including personnel and travel costs.
Initial Training for Replacement Managers The then-current fee. Currently, $2,500 per person.
On-Site Additional or Remedial Training of Consulting Services Actual travel and living expenses of the franchisor’s employees or agents.
Franchised Managed Training Program Fee $500 to $1,500 per restaurant annually.
Conference Fee Reasonable registration fee, which will vary by event.
Transfer Fee (License Agreement) 50% of then-current initial franchise fee.
Transfer Fee (Development Agreement) $7,500
Late Fees and Interest Charge on Late Payments $100 per week for late royalty and $25 per week for marketing-related fees, plus 18% per annum (or highest rate allowed by law).
Audit Fee Cost of audit.
Indemnification/Attorney Fees and Costs/Damages Amount of the franchisor’s liabilities, fines, losses, damages, costs and expenses (including reasonable attorneys’ fees).
Inspection Fee Actual costs and expenses, but no less than $500 per additional inspection.
Document Fee The franchisor’s actual costs and expenses (including cost of personnel and attorneys’ fees and expenses).
Renewal Fee 50% of then-current initial franchise fee.

The above information has been compiled from the FDD of Zaxby’s. Year of FDD: 2021. Franchise Direct’s Disclaimer

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Category : Finance

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