Zaxby's Franchise Cost (2026): $578K–$1.27M Chicken QSR

Per the current FDD filed under the FTC Franchise Rule (16 CFR Part 436), total estimated initial investment for a Zaxby's franchise runs $578,000–$1,270,000. The dine-in component adds furniture and dining room build-out costs:

• Franchise fee: $35,000
• Land and building (owned) or leasehold improvements (leased): $250,000–$650,000
• Kitchen and fry equipment: $130,000–$280,000
• Drive-through equipment: $25,000–$60,000
• Dining room furniture, fixtures, and signage: $50,000–$130,000
• POS and technology: $20,000–$40,000
• Initial inventory: $10,000–$20,000
• Training and travel: $10,000–$25,000
• Grand opening marketing: $10,000–$25,000
• Working capital (3 months): $25,000–$60,000
• Professional fees, permits, insurance: $15,000–$30,000

Zaxby's is listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan processing. Financing paths:

• SBA 7(a) loan: Covers franchise fee, leasehold improvements, kitchen equipment, and working capital. Leased locations in the $578K–$900K range fit comfortably within SBA 7(a) program parameters.
• SBA 504 loan: For owned freestanding locations, SBA 504 pairs a bank loan (50%) with an SBA-backed debenture (40%) and franchisee equity (10%).
• Equipment financing: Commercial fry equipment and kitchen systems can be financed separately over 5–7 years.
• Conventional commercial real estate loan: Multi-unit operators with strong financial statements may combine conventional lending with SBA.
• Working capital line of credit: Supports pre-opening labor and food cost during the first 60–90 days of operations.

Zaxby's suits experienced QSR operators with Southeast market knowledge. The dual-format dine-in and drive-through model requires managing both front-of-house dining room experience and drive-through speed-of-service simultaneously. Multi-unit QSR operators building a chicken-forward portfolio often combine Zaxby's with complementary breakfast and sandwich concepts. Net worth of $500K+ and liquid capital of $150K+ are typical financial benchmarks.

Zaxby's is on the SBA Franchise Directory, enabling expedited SBA loan eligibility review. At $578K–$1.27M, this is a mid-to-large QSR deal — SBA 7(a) is the primary financing path for most Zaxby's builds. Key underwriting factors:

• Debt service coverage ratio (DSCR): SBA SOP 50 10 8 sets the minimum DSCR at 1.15×; most SBA lenders require 1.25×–1.35× for QSR startups. Zaxby's 7.5% combined royalty/ad fee (6% royalty + 1.5% ad fund) is above the QSR median — lenders model DSCR from FDD Item 19 average annual revenue for comparable Zaxby's locations, adjusting for the fee load and full operating cost stack.
• Equity injection: SBA requires a minimum 10% equity injection. At $578K–$1.27M, lenders typically require 20% for QSR chicken franchise builds — that's approximately $115K–$254K from the borrower's own verifiable funds, seasoned 60+ days in the account before closing.
• Southeast market concentration risk: Zaxby's operates primarily in the Southeast US (18 states). Lenders in new expansion markets outside Zaxby's core territory may apply additional scrutiny to projected AUV assumptions — trade area analysis and comparable Southeast market performance data strengthen the pro forma.
• Restaurant management experience: Prior QSR or full-service restaurant management experience is a positive underwriting signal. Zaxby's casual dine-in + drive-through format requires staffing management capabilities — lenders evaluate the borrower's prior food service track record as part of the overall credit assessment.
• Drive-through or inline site quality: Zaxby's operates in both drive-through and inline formats. Lenders review lease terms (must cover the full loan term, typically 10+ years), site control, and site approval from Zaxby's corporate before issuing credit approval.