How to Finance a Zaxby's Franchise in 2026

Zaxby's total investment runs $472K–$2.5M depending on unit format. Franchisees must meet franchisor financial thresholds before lenders get involved. SBA 7(a) is the primary financing vehicle.

Key takeaways

• Total investment: $472K–$2.5M depending on unit format (freestanding, in-line, or conversion)
• Zaxby's is on the SBA Franchise Directory — SBA 7(a) covers the financed portion up to $5M
• Chicken-focused QSR with strong Southeast regional brand; expanding nationally with franchise development
• SBA 504 applies when the franchisee acquires real estate as owner-occupied commercial property
• Equipment financing can be layered for fryers, refrigeration, prep systems, and POS technology
• Typical lender timeline: 60–90 days from completed application to funding

Zaxby's is a chicken finger and wing QSR chain with over 900 locations, primarily concentrated in the Southeast. The brand has been expanding its franchise footprint nationally. Its investment range of $472K–$2.5M reflects a range from in-line strip-center conversions to freestanding new builds. This guide covers the financing mechanics. For a startup cost breakdown, see the companion cost-to-start guide.

Zaxby's total investment + what lenders look at

Total estimated initial investment per the current FDD runs $472K–$2.5M depending on unit format, geography, and new vs. acquired unit. Lenders evaluate the following when underwriting a Zaxby's franchise deal:

• Equity injection documentation: SBA requires a minimum 10–20% of total project cost in non-borrowed liquid cash.
• Restaurant operating experience: Zaxby's prefers franchisees with multi-unit QSR backgrounds; lenders treat this as a risk signal.
• Location cash flow (existing unit): Trailing 12-month revenue; DSCR of 1.25x or better for acquisitions.
• Build-out format: Freestanding new builds carry higher capital requirements than in-line conversions; lenders model both differently.
• Personal credit: 680+ personal FICO is a common SBA lender threshold for franchise deals in this investment range.

SBA 7(a) for Zaxby's franchises

The SBA 7(a) loan program is the primary financing vehicle for Zaxby's franchise acquisitions. Zaxby's listing on the SBA Franchise Directory allows lenders to bypass independent franchise agreement review — shortening timelines by 2–4 weeks. Key parameters:

• Maximum loan amount: $5M — covers most single-unit Zaxby's new builds and some lower-end multi-unit packages
• Terms: Up to 10 years for equipment and working capital; up to 25 years when real estate is included
• Rate: Prime + 2.75% for loans over $350K (variable); fixed-rate options vary by lender
• Use of proceeds: Acquisition price, leasehold improvements, kitchen equipment, working capital reserve
• What it does NOT cover: The equity injection — that must come from borrower's own liquid assets

SBA 504 for real estate and build-out

The SBA 504 program applies when a Zaxby's franchisee is acquiring freestanding real estate as owner-occupied commercial property. Structure: 50% conventional bank loan + 40% SBA 504 debenture (long-term fixed rate) + 10% borrower equity. Given Zaxby's preference for freestanding builds in high-visibility locations, 504 is a relevant structure for operators planning to own their building.

Equipment financing for Zaxby's

Commercial fryers, chicken wing prep systems, refrigeration units, and POS technology can be financed separately via equipment loans or leases — layered on top of the primary SBA 7(a) loan. Equipment loans typically run 3–7 year terms, collateralized by the equipment itself. Zaxby's chicken-centric menu requires specialized fry equipment that warrants standalone financing consideration on larger builds.

Franchisor financing programs

Zaxby's does not operate a direct in-house lending program for franchisees. The company refers franchisee candidates to lenders with QSR franchise experience. Development agreements exist for qualified multi-unit operators, but these are operational structures, not direct financing products. The actual debt financing is market-rate from third-party lenders.

Down payment and liquidity requirements

Zaxby's discloses franchisee financial requirements in the current FDD — review Item 5 and Item 7 with your lender before approaching any financing. The investment range of $472K–$2.5M means SBA equity injection requirements run $47K–$500K depending on the deal. Freestanding new builds at the top of the range require materially higher liquidity than in-line conversions. Document liquidity before Zaxby's corporate approval, not after.

Timeline to funding

1. Pre-qualification: Lender reviews financial statements, Zaxby's approval letter, and FDD. 1–2 weeks.
2. SBA package: Full SBA application: SBA Form 413, 3 years tax returns, business plan, site lease or purchase agreement. 2–3 weeks.
3. SBA approval: SBA review and conditional commitment. 3–6 weeks depending on lender's Preferred Lender (PLP) status.
4. Closing and funding: Title, legal, and closing. 2–3 weeks post-commitment. Total: 60–90 days from complete application.

Apply with ClearValue Lending

ClearValue Lending works with franchise operators at every stage — from first-unit acquisition to multi-unit expansion financing. Apply at Find my match. Your file routes to one matched lender in our network. Related: SBA 7(a) loans explained · SBA 504 loan explained.

Sources

• Zaxby's is listed on the SBA Franchise Directory, making it eligible for expedited SBA 7(a) franchisor review. — SBA Franchise Directory
• SBA 7(a) loans provide up to $5M for eligible franchise startup and acquisition costs, with terms up to 25 years when real estate is included. — SBA 7(a) Loan Program
• SBA 504 loans finance owner-occupied commercial real estate with a long-term fixed-rate debenture — applicable to franchise real estate acquisitions. — SBA 504 Loan Program
• The FTC Franchise Rule requires franchisors to provide a Franchise Disclosure Document (FDD) with Item 7 (estimated initial investment) and Item 5 (fees). — FTC Franchise Rule — Buying a Franchise: A Consumer Guide
• FDIC data shows SBA-guaranteed loans are the dominant vehicle for QSR franchise acquisitions where borrower equity meets the 10–25% injection threshold. — FDIC — Financial Institution Letters

What lenders look for in a Zaxby's franchise application

Here are the five factors SBA lenders evaluate when underwriting a Zaxby's franchise deal (per SBA SOP 50 10 7):

• Equity injection and franchisor thresholds: Zaxby's FDD discloses financial qualification minimums for prospective franchisees. SBA requires 10–20% equity injection. The wide investment range ($472K–$2.5M) means larger freestanding builds may require SBA 7(a) + SBA 504 pairing — the two programs can be combined when real estate is owned.
• Regional concentration risk: Zaxby's brand recognition is strongest in the Southeast — Alabama, Georgia, Tennessee, South Carolina. Lenders underwriting deals in non-core trade areas may apply additional scrutiny to revenue projections, requesting competitive landscape analysis and market feasibility data beyond what FDD Item 19 provides.
• Drive-through DSCR: Zaxby's drive-through units generate higher throughput per labor hour than dine-in-only formats. Lenders model drive-through traffic counts and AUV data from FDD Item 19. A DSCR of 1.25x or better at 75% of projected revenue is a common lender stress test for chicken QSR deals.
• Site control and lease term alignment: Freestanding builds require land control — ground lease or fee ownership. Lenders verify lease term alignment: SBA minimum of 10 years of remaining term (base + options) for a 10-year loan. Freestanding pad sites with real estate acquisition are candidates for SBA 504 structuring.
• Personal credit and operator experience: Most SBA lenders require 680+ FICO for QSR franchise deals above $500K. Zaxby's is selective in franchisee approval — the corporate approval letter is required before lenders issue a conditional commitment. Prior QSR operating experience is a meaningful underwriting signal.

Regional expansion creates underwriting scrutiny for non-Southeast markets

Zaxby's is expanding outside its Southeast core. Lenders in markets where Zaxby's has limited operating history will stress-test revenue projections more aggressively than in core states. Prepare a competitive mapping report, trade area demographic analysis, and — where available — AUV data from nearby Zaxby's units. Strong FDD Item 19 data helps, but market-specific documentation is what moves hesitant lenders to commit.

Frequently asked questions