Zaxby's

Zaxby's is an American quick service restaurant chain serving chicken fingers, wings, sandwiches, and salads. Zach McLeroy and Tony Townley, childhood friends, founded the company in March 1990 in Statesboro, Georgia, near Georgia Southern University. The business began as “Zax” before becoming Zaxby's. As of January 2026, the franchise has more than 1,000 restaurants in 22 states. That compares with more than 900 locations in 17 states in 2022 and more than 980 restaurants in 19 states by September 2025. Zaxby's headquarters are in Bradenton, FL, while its operating and historical roots remain in Georgia. The brand operates in the Limited Service Restaurants category and has grown from a regional chain into a national quick service restaurant company.

Limited Service Restaurants benefit from demand for convenience, speed, and value. Chicken focused menus, including chicken fingers and wings, continue to attract customers, while faster lifestyles, urbanization, dual income households, and ordering and delivery technology support the category. The market includes many independent operators alongside several large national chains. Zaxby's has become one of the larger national brands through its unit count and expansion. Its focus on chicken aligns with a protein category that has shown consistent growth. The company also serves customers through formats suited to high traffic locations and quick meals, including college campuses, military bases, and travel hubs.

Opening a Zaxby's requires substantial capital. The initial franchise fee is $35,000. Select Market Incentives may provide a full refund of that fee after the store opens for qualifying franchisees. Under a development agreement for multiple units, 50% of the aggregate initial franchise fees is due when the agreement is signed, with the remaining 50% due when the site for each location is confirmed. Zaxby's may waive or reduce the initial fee for shareholder owned entities or development in selected growth markets. Estimated total initial investment ranges from $1,445,000 to $3,810,500. Another source gives a range of $1,406,700 to $3,323,200. Costs may include construction, site work, architect and engineer fees, permits and licenses, equipment, technology systems, signage, insurance, opening inventory, uniforms, training, and pre opening payroll. The ongoing royalty is 6% of gross sales. Under Select Market Incentives, the royalty may be waived in year one, reduced to 3% in year two, and return to 6% in year three. The national advertising, or brand fund, fee is generally 4% of gross sales and may range from 2.5% to 5%. An initial marketing contribution of $5,200 to $10,000 is due at least five days before opening.

Zaxby's operating model is built around high volume service and consistent preparation of chicken fingers, wings, sandwiches, and salads. Franchisees manage peak meal periods, customer service, fresh ingredient preparation, kitchen work, front of house activity, and drive through operations. The source does not specify staffing levels, training duration, training location, or required hands on training hours. The business therefore carries a significant labor component, while its national system provides initial training for franchisees and management teams. Ongoing support generally includes field consultant guidance, point of sale and inventory technology, national and local marketing programs, and an established supply chain. Zaxby's is testing non traditional locations such as college campuses, military bases, and travel hubs. The system operates exclusively in the United States.

Public unit growth offers context, although it does not replace store level financial data. Zaxby's had more than 900 locations in 17 states in 2022, more than 930 by August 2023, and more than 940 by February 2024. In 2025, it had 969 total units, including 826 franchised owned and 143 company owned locations. The count rose to more than 980 restaurants in 19 states by September 2025 and more than 1,000 restaurants in 22 states by January 2026. The company has targeted 100 new stores annually over the long term, more than 50 openings in 2025, and 60 or more in 2026. Goldman Sachs acquired a majority stake in Zaxby's in November 2020. Bernard Acoca became the company's first non founder CEO in January 2022. Those developments, along with the unit expansion, provide additional context for evaluating the system's direction and performance potential.

Zaxby's unit count increased from more than 900 locations in 17 states in 2022 to more than 930 in August 2023, more than 940 by February 2024, and 969 total units in 2025. The 2025 total included 826 franchised owned and 143 company owned locations. By September 2025, the system had more than 980 restaurants in 19 states, followed by more than 1,000 restaurants in 22 states as of January 2026. Development plans call for 100 new stores annually over the long term, more than 50 new openings in 2025, and 60 or more in 2026. The development pipeline has a strategic goal of 10% annual net unit growth over time. Goldman Sachs acquired a majority stake in November 2020. Tony Townley later exited the company, and Zach McLeroy moved from CEO to chairman of the board of directors in January 2022 after more than 30 years of leadership. Bernard Acoca became the first non founder CEO in January 2022, bringing experience from other restaurant concepts. The company has entered Las Vegas and Phoenix, expanded in Illinois, Maryland, New Jersey, and Pennsylvania, and announced Dallas metro area expansion in February 2024. It is also pursuing growth in college campuses, military bases, and travel hubs. Conversions of other restaurant properties now represent 15% to 20% of openings.

A suitable Zaxby's candidate is generally an experienced multi unit operator or business professional with strong management experience and substantial capital. The estimated investment range of $1,445,000 to $3,810,500 makes financial capacity a central consideration. Restaurant experience can help, while Zaxby's provides training and ongoing corporate support for qualified franchisees. Multi unit development is a clear priority, reflected in the goal of 100 new stores annually, the 10% annual net unit growth objective, and development agreements that require 50% of initial franchise fees upon signing. Growth markets identified for 2026 include Florida, Illinois, Indiana, Kentucky, Michigan, Ohio, Tennessee, Texas, and Virginia. Zaxby's has already entered Las Vegas and Phoenix, expanded through Illinois, Maryland, New Jersey, and Pennsylvania, and announced Dallas metro area expansion in February 2024. The company operates only in the United States. Its interest in college campuses, military bases, and travel hubs may suit operators who can find and develop sites in varied locations.

The system grew from more than 900 locations in 2022 to more than 1,000 by January 2026, with plans for 10% annual net unit growth and 60 or more openings in 2026. Goldman Sachs acquired a majority stake in November 2020, and Bernard Acoca became the first non founder CEO in January 2022. PeerSense provides independent franchise research, including SBA lending history, Loan Activity Score, location maps with Google ratings, FDD financial data, and side by side comparison tools. PeerSense introduces franchise buyers to SBA and conventional lenders and is not a lender. Buyers can use the Zaxby's franchise profile to review the available information before deciding whether to pursue the opportunity.