How to Finance a Zaxby’s Franchise: Multi-Unit Chicken QSR Costs
By Anthony Cornella
A Zaxby’s franchise loan usually finances a freestanding quick-service chicken restaurant: the land or ground lease, the building, a high-volume kitchen and drive-thru, and the working capital to open. Zaxby’s recent growth has centered on development agreements with experienced operators, so many borrowers are planning a series of restaurants rather than a single location.
This article explains what the company publishes about the brand, how restaurant real estate and construction drive a Zaxby’s budget, how SBA 7(a), SBA 504 and conventional loans fit together, what the brand’s SBA Franchise Directory note about the lease rider means, and how lenders size and structure multi-unit chicken restaurant deals.
US Professional Funding is not affiliated with, sponsored by or endorsed by Zaxby’s; the name is used only to describe the business. Figures from the franchisor’s disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to approval. Nothing here is legal, tax or investment advice, and buyers should review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant.
Zaxby’s Franchise Loan at a Glance
- Brand: founded in 1990 in Statesboro, Georgia, and headquartered in Atlanta. The company now often styles its name as Zaxbys.
- System size: more than 1,000 locations in 23 states, according to the company’s October 2026 announcements.
- Menu focus: chicken fingers, wings, salads and the brand’s signature sauces.
- Growth model: multi-unit development agreements with experienced operators in new and existing markets, plus non-traditional locations such as highway travel plazas.
- Initial fee, royalty and total investment: disclosed in Items 5, 6 and 7 of the current FDD; we could not verify current figures from the franchisor’s own published materials.
- Owner requirements: net worth, liquidity and development commitments are set by the franchisor; confirm them in the FDD and during the application process.
- SBA Franchise Directory: listed as “Zaxby’s” (identifier S1986), with a note that the brand’s lease rider may not be executed when real estate secures the SBA loan.
What Is Zaxby’s?
Zaxby’s opened in 1990 in Statesboro, Georgia, and is now headquartered in Atlanta. The company describes itself as known for its chicken fingers, wings, salads and signature sauces, and it reports more than 1,000 locations across 23 states.
Southeastern roots, national expansion. The brand built its footprint in the Southeast, and recent company announcements show it pushing into new regions through development agreements. Over 2025 and 2026, the company announced multi-unit agreements for markets including Ohio, Missouri, the Chicago area, northwest Indiana and the Baltimore area. For a borrower, that matters in two ways: development in established markets benefits from brand awareness, while entry into newer markets means a lender will look harder at projections and the operator’s local experience.
Non-traditional formats. In October 2026 the company announced its largest non-traditional development agreement to date, covering five restaurants at highway service plazas in Florida, the first of which opened on September 29, 2026. It also said it is exploring airports, colleges and universities, military installations and other high-traffic venues. Non-traditional units are usually developed by specialized operators under different real estate arrangements than a freestanding restaurant.
The operators Zaxby’s looks for. The company’s development announcements consistently emphasize experienced, locally rooted operators who can grow in their communities. Candidates should expect the franchisor to ask about restaurant, retail or multi-unit experience and the capital to open more than one location.
Why lenders view Zaxby’s deals the way they do. Lenders see a long-established chicken brand in one of the most competitive quick-service categories with a large system and drive-thru formats. They also see a capital-intensive build: freestanding restaurants require land or a ground lease, site work, a building and a full kitchen package. A Zaxby’s franchise loan is therefore underwritten on the real estate, the operator’s track record and the development schedule as much as on the brand.
Zaxby’s Franchise Costs
The cost of a Zaxby’s restaurant depends heavily on real estate. Buying land and building a freestanding restaurant is a very different budget than leasing a pad site, converting an existing building or opening a non-traditional unit. Item 7 of the current FDD gives the franchisor’s estimated range and assumptions for each format it describes.
Initial franchise fee. The fee is set out in Item 5 of the FDD, along with any development fee due under a multi-unit agreement. Development fees are often paid at signing and credited toward later restaurants, so confirm how your schedule handles them.
Land and real estate. Many Zaxby’s restaurants are freestanding buildings on their own pads. An owner can buy land and build, sign a ground lease and build, or lease a completed building from a developer. Each choice changes how much you borrow and what secures the loan. Our guide to financing franchise real estate covers the trade-offs.
Building and site work. Site work, utilities, parking, drive-thru lanes and the building itself are usually the largest construction costs. Lenders expect plans that meet the franchisor’s design requirements, a contractor bid and a contingency.
Equipment and technology. A Zaxby’s kitchen relies on fryers, breading and prep stations, refrigeration and freezers, holding equipment, beverage systems, ventilation and fire suppression, along with drive-thru communication systems, point-of-sale terminals and digital ordering technology.
Signage and decor. Exterior pylon and building signs, menu boards, drive-thru signage and interior decor all follow brand standards.
Opening costs and working capital. Training, pre-opening payroll, opening food and paper inventory, grand opening marketing, insurance, deposits and a working capital reserve complete the budget.
Total investment. Restaurant FDDs typically break Item 7 into categories like the ones below. Use the current Zaxby’s FDD for the actual ranges, and make sure your budget’s line items add up to the total your lender sees:
- Initial franchise fee and any development fee
- Land purchase, ground lease costs or rent before opening
- Site work and building construction
- Architectural, engineering and permit fees
- Kitchen equipment, smallwares and furniture
- Drive-thru, point-of-sale and technology systems
- Signage and decor
- Opening inventory
- Training and pre-opening payroll
- Grand opening marketing
- Insurance, deposits and professional fees
- Additional funds for the initial operating period
Ongoing Fees and How They Affect Your Loan
Royalty. Restaurant franchisors typically charge a royalty based on sales; the Zaxby’s rate and how it is calculated are in Item 6 of the FDD.
Advertising and marketing. Franchisees contribute to brand advertising and may have local or regional marketing obligations. Item 6 lists the contribution rates and any cooperative requirements.
Technology and other fees. Expect fees for point-of-sale and digital ordering systems, loyalty and app programs, training and other services. Each is described in Item 6.
Rent or ground lease. If you lease the land or building, rent is one of the largest fixed costs in the restaurant. Lenders compare it with expected sales to judge occupancy cost.
Remodels and reimaging. Restaurant franchise agreements typically require periodic remodels or reimaging. Ask what the current FDD requires and when, because the timing affects your long-term capital plan.
How lenders factor these costs in. Lenders project sales, then subtract food and paper costs, labor, royalty, advertising, technology fees, rent or real estate costs, utilities, insurance and repairs. The remaining cash flow must cover debt service with a cushion. Because royalty and advertising are tied to sales, they rise and fall with the restaurant, while rent and debt service are fixed, so lenders stress-test the sales projections.
Franchisor Requirements for New Owners
Zaxby’s sets its own net worth, liquidity and development requirements, and its development announcements emphasize experienced operators. We could not verify current minimums from the franchisor’s own published materials, so confirm them with the franchisor and in the FDD.
What to expect:
- Financial qualification: documentation of net worth and liquid assets for all owners.
- Experience review: restaurant or multi-unit operating experience, or a strong operating partner.
- Development commitment: new owners may sign for multiple restaurants on a schedule.
- Market and site approval: the franchisor approves the market and each site.
- Training: owners and managers complete the franchisor’s training program before opening.
Lenders apply their own standards to a Zaxby’s franchise loan on top of the franchisor’s. The equity injection, post-closing liquidity and operating experience all affect how much you can borrow and on what terms.
Ways to Own a Zaxby’s
A new restaurant under a development agreement. The company’s recent growth announcements center on development agreements. The owner signs for several restaurants, then finances each as it is built. Lenders underwrite the first restaurant on projections and the operator’s experience. See how we approach franchise start-up financing.
Buying an existing restaurant. Existing Zaxby’s restaurants change hands between franchisees, either individually or as part of a portfolio. The franchisor must approve the transfer. Lenders can underwrite actual sales and cash flow, which can make financing more predictable. Learn more about franchise restaurant acquisition financing.
Buying a portfolio. Multi-unit portfolios trade as packages. Lenders review each restaurant and the combined cash flow, and they pay close attention to leases, remodel obligations and any underperforming units.
Non-traditional locations. Travel plazas, airports, campuses and similar venues are usually developed under specialized agreements with operators that already hold the concession or site rights. Financing these units centers on the concession terms rather than real estate ownership.
Financing Options for a Zaxby’s Franchise
SBA 7(a) loans. The SBA 7(a) program can finance land, construction, equipment, the franchise fee and working capital in one loan, which suits a new freestanding restaurant. The SBA 7(a) program maximum is currently $5 million (program rules can change), which may cover a single restaurant with real estate or more than one leased restaurant, depending on cost.
SBA 504 loans. When the owner buys land and builds, the SBA 504 program can finance the real estate and long-lived equipment with a first mortgage from a lender and a second loan from a certified development company, plus owner equity. Owners often pair a 504 loan for the real estate with separate financing for equipment and working capital.
Conventional loans. Experienced multi-unit operators frequently use conventional business loans for development or acquisitions, especially once they have a track record. Conventional lenders may finance restaurants individually or under a development line that funds several sites over time.
Equipment financing. Fryers, refrigeration, holding equipment, beverage systems, drive-thru technology and point-of-sale systems can be financed or leased separately, which preserves cash for real estate and construction. Explore restaurant equipment financing and leasing.
Working capital and lines of credit. Pre-opening payroll, opening inventory and the first months of operation require cash, and multi-unit owners need liquidity to keep their development schedule on track. See our restaurant working capital options.
Sale-leaseback. Some owners build a restaurant, then sell the real estate to an investor and lease it back, freeing equity for the next site. This changes the restaurant’s cost structure, because rent replaces mortgage payments, so lenders review the lease terms closely.
Seller financing on resales. A selling franchisee may carry part of the price. Any seller note must be acceptable to the senior lender and is typically subordinate to it, and SBA programs may limit how seller financing is structured or counted toward the buyer’s equity.
Franchisor financing. Review Item 10 of the FDD to see whether the franchisor offers any financing. We could not verify a franchisor financing program from its published materials.
SBA Loans for Zaxby’s Franchisees
SBA lenders generally require a franchise brand to appear on the SBA Franchise Directory before making an SBA-guaranteed loan to its franchisee. The directory lists brands whose franchise documents have been reviewed for SBA eligibility; a listing does not approve any borrower or site.
Zaxby’s directory listing. Zaxby’s is listed under identifier S1986. The listing carries one note: when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the brand’s lease rider may not be executed.
What the note means in plain English. Franchisors often require a lease rider that gives them rights in a franchisee’s lease, such as the right to take over the location. If the owner’s real estate will be collateral for the SBA loan, signing that rider could conflict with the lender’s rights in the property, so it may not be executed in that situation. If you lease your site from a third-party landlord and the real estate is not SBA collateral, the note generally does not come into play. Raise the issue early with your lender, the franchisor and your attorney so that the closing documents line up.
SBA application tips. Gather the FDD and development agreement, a site plan and construction budget, a contractor bid, an appraisal for any real estate, and projections built on realistic sales and costs. Document your equity injection clearly. Our SBA loan calculator can help with early payment estimates, which are for planning only and are not an offer or approval.
How Lenders Evaluate a Zaxby’s Deal
Personal credit and financial history. Lenders review credit, tax returns and personal financial statements for all significant owners and typically require personal guarantees.
Net worth and liquidity. Freestanding restaurants are capital-intensive, and a development schedule multiplies the need. Lenders want to see liquidity after the equity injection, enough to fund the next restaurant’s equity as well as cover the current one’s ramp-up.
Industry and management experience. Quick-service restaurant or multi-unit experience is a major factor. First-time restaurant owners usually strengthen a request by bringing in an experienced operating partner or general manager.
Business plan and projections. Projections should reflect the trade area, traffic counts, drive-thru capacity, local competition, labor costs and the brand’s fee structure, with a realistic ramp for a new restaurant. In newer Zaxby’s markets, lenders may discount projections until local units have history.
The FDD and franchise agreement. Lenders review the term, renewal and transfer provisions, remodel requirements, the development schedule and default provisions. Our article on reading an FDD for financing explains what they focus on.
Site, lease or real estate. Lenders want an appraisal for owned real estate, environmental reports and a survey. For leased sites, they review the lease term, renewal options, rent escalations and any franchisor lease rider.
Historical financials for resales. For an existing restaurant, expect to provide several years of profit and loss statements and sales reports, which lenders compare with tax returns.
Kitchen, Drive-Thru and Real Estate Deep Dive
Chicken restaurants are equipment-intensive. Fryers run all day, and breading, holding and beverage stations must keep pace with drive-thru volume. Equipment has a useful life well short of the building’s, so plan for replacement during the loan term.
Drive-thru capacity. Stacking room, menu boards, order points and pickup windows directly affect throughput. Lenders and the franchisor both look at site layout because a poorly designed drive-thru limits sales.
Real estate structure. Owning the land gives an owner collateral and long-term control, but it ties up more equity. A ground lease lowers the up-front cost but leaves the land with the landlord. A sale-leaseback recovers equity but adds rent. Choose the structure that fits your development plan, and remember that the SBA directory note applies when real estate secures an SBA loan.
Remodel cycles. Ask about required remodels and reimaging timelines before you buy an existing restaurant, and build them into the purchase financing or a planned future loan.
Multi-Unit Growth and Development Agreements
Development agreements are central to Zaxby’s growth. The company’s recent announcements describe agreements covering multiple restaurants in markets such as Ohio and Missouri, and a separate multi-unit agreement for travel plaza locations.
Financing the schedule. Lenders usually finance one restaurant at a time, approving the next once earlier restaurants show solid performance. Match your development schedule to your ability to raise equity, secure sites and obtain financing for each opening. Read more about multi-unit franchise financing.
Consolidated reporting. As your group grows, lenders will want consolidated financial statements and may consider combined cash flow, cross-guarantees or a development line of credit.
Real-World Scenarios
An experienced operator entering a new market. A restaurant group with other quick-service brands signs a development agreement for several Zaxby’s restaurants in a Midwestern market. The first restaurant is built on purchased land with an SBA 504 loan, and equipment is financed separately. The lender scrutinizes projections because the market has few existing Zaxby’s restaurants.
A buyer acquiring an existing restaurant. A former general manager buys a single restaurant from a retiring franchisee. The lender underwrites actual sales, the remaining franchise term and the lease, and the seller carries a small subordinate note.
A multi-unit owner using a sale-leaseback. An owner with several restaurants builds a new location, sells the real estate to an investor and leases it back. The proceeds fund equity for the next site, and the lender adjusts cash flow for the new rent.
An existing franchisee buying a portfolio. An established operator buys a group of restaurants from another franchisee. The lender reviews each restaurant, the combined cash flow and upcoming remodel obligations before approving a conventional acquisition loan.
Common Mistakes to Avoid
- Signing a development schedule you cannot fund or staff
- Underestimating site work and construction costs for a freestanding restaurant
- Ignoring the SBA directory note when real estate will secure the loan
- Projecting sales for a newer market as if it were an established one
- Choosing a sale-leaseback without modeling the new rent
- Overlooking remodel requirements when buying an existing restaurant
- Leaving too little working capital for pre-opening and ramp-up
For more pitfalls that apply across the industry, read the restaurant loan mistakes owners should avoid.
Next Steps to Finance Your Zaxby’s Franchise
Step 1: Confirm requirements. Ask the franchisor for its current net worth, liquidity and experience requirements, and for the markets open for development.
Step 2: Review the FDD. Study Items 5, 6, 7, 10, 12, 17 and 19, the franchise agreement and any development agreement with a franchise attorney and accountant.
Step 3: Talk with a financing specialist early. Before you sign a development agreement, learn how lenders will size each restaurant and how your equity will stretch across the schedule.
Step 4: Choose a real estate strategy. Decide between purchase, ground lease, building lease or sale-leaseback, and understand how each affects SBA eligibility and collateral.
Step 5: Secure your first site. Obtain franchisor site approval, a contractor bid and an appraisal or lease.
Step 6: Apply for financing. Submit your personal financial statement, tax returns, the FDD, development agreement, site documents, budget and projections.
Step 7: Build, open and plan the next unit. Coordinate construction, equipment delivery, hiring and training, then use the first restaurant’s results to finance the next.
Zaxby’s Franchise Loan FAQs
How much does it cost to open a Zaxby’s?
The total investment depends on the format and real estate. Item 7 of the current FDD gives the franchisor’s estimated range; buying land and building costs significantly more than leasing a site.
What is the Zaxby’s franchise fee?
The initial franchise fee and any development fee are disclosed in Item 5 of the current FDD.
What royalty does Zaxby’s charge?
The current royalty and advertising contribution rates, and how they are calculated, are in Item 6 of the FDD.
How many Zaxby’s restaurants are there?
The company reports more than 1,000 locations in 23 states as of its October 2026 announcements.
Can I get an SBA loan for a Zaxby’s?
Yes, for qualified borrowers. Zaxby’s is listed on the SBA Franchise Directory, with a note that the brand’s lease rider may not be executed when real estate secures the SBA loan.
Can I use an SBA 504 loan for a Zaxby’s?
Yes, when you are buying land and building or purchasing an existing restaurant’s real estate. A 504 loan finances owner-occupied real estate and long-lived equipment.
Can I finance equipment separately?
Yes. Fryers, refrigeration, holding equipment, drive-thru technology and point-of-sale systems can often be financed or leased separately.
Can I buy an existing Zaxby’s restaurant?
Yes, with franchisor approval of the transfer. Lenders can underwrite an existing restaurant’s actual sales and cash flow.
Do I need restaurant experience?
The company’s announcements emphasize experienced operators, and lenders weigh experience heavily. First-time owners typically need an experienced operating partner or general manager.
Does Zaxby’s offer financing?
Review Item 10 of the FDD for any franchisor financing. Owners typically arrange SBA, conventional and equipment financing on their own.
How long is a Zaxby’s franchise agreement?
The term, renewal and transfer conditions are in Item 17 of the FDD. Lenders prefer a remaining term that runs beyond the loan term.
Does the FDD include financial performance information?
Review Item 19 of the current FDD to see what financial performance representations it includes, and rely on your own projections and, for an existing restaurant, its actual results.
Final Thoughts
A Zaxby’s franchise loan is as much about real estate and development capacity as it is about the brand. Owners who choose the right real estate structure, plan around the SBA lease rider note, pace their development schedule to their equity and build realistic projections for their market are best positioned to finance not just one restaurant, but the next several.
US Professional Funding helps franchise owners finance restaurant development, acquisitions, equipment and working capital. Learn more about our franchise financing and restaurant financing solutions.
