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Zaxby`s Franchise Agreement

20 Apr 2022

Duration of the contract and extension: The duration of the initial deductible is 10 years from the opening of the restaurant. Subject to the franchisor`s requirements, franchisees may be allowed to extend for a further consecutive period of 10 years. Business experience: Potential franchisees must meet the following criteria to be considered: Collective net worth of at least $1,000,000 with liquid assets over $500,000 (liquidity is defined as cash or assets that could be converted into cash within ten business days). Ability to satisfactorily pass background checks for: adequate creditworthiness, no criminal convictions, no history of extensive litigation and a satisfactory report on motor vehicles. Willingness of all investors to personally guarantee all obligations required under the license agreement. Willingness to engage with this company within 60 to 90 days of signing a license agreement. Belief that customer service is crucial in the restaurant industry. Territory granted: Franchisees do not receive exclusive territory. Franchisees may face competition from other franchisees, with outlets owned by the franchisor, or with other distribution channels or competing brands controlled by the franchisor. However, franchisees have, in their sole discretion, certain limited intellectual property rights in an area designated by the franchisor around the restaurant (the protected area). In the protected area, the franchisor will not operate a restaurant in the protected area and will not allow other persons to operate a restaurant, with the exception of a non-traditional point of sale.

A non-traditional point of sale is a restaurant located in a non-traditional location or operated from a non-traditional location, including public transportation, sports arenas, stadiums, gas stations, road service areas, entertainment or tourist facilities, shopping malls, military bases, etc. Financial Support: The franchisor does not offer direct or indirect financing and does not guarantee the lease or other obligations of a franchisee. The first training program lasts eight weeks and includes a one-week orientation period at Zaxby`s Franchising, Inc. Training Center, three two-week phases at a training restaurant, and the final one-week phase at ZFI`s training center. Ongoing updates to support and training, as well as other business development practices – including on-site inspections – are conducted regularly throughout the franchise system. 2. Development Fee: 50% of the total initial franchise fee payable for all restaurants open under the Development Agreement Obligations and Restrictions: Franchisees must do their best to manage, promote and operate the restaurant efficiently and effectively. While the franchisor recommends that the designated principal be actively involved in the operation of the restaurant, this does not require the designated manager or any of the owners to be personally involved in the day-to-day operation and supervision of the on-site restaurant. The designated principal must have authority over all business decisions related to the restaurant and the power to bind the franchisee in all stores with the franchisor.

At all times the restaurant is open, it must be under the personal supervision of a certified on-site manager. Franchisees may only offer restaurant customers those products and services that the franchisor has approved in writing. In addition, franchisees must offer the specific products and services that the franchisor requires in the manual or otherwise in writing. Franchisees may only use the restaurant for the operation of the system restaurant. The total investment can be found in a separate article: If you`re considering a Zaxby`s franchise, don`t let these 21 important franchise fees take you by surprise (from the initial franchise fee to the license fee to the other 19 fees found in points 5 and 6 of Zaxby`s 2018 FDD). Owners must complete a two-month training program before opening their own restaurant, as well as attend semi-annual franchisee conferences. While owners are not required to work at the restaurant, at least one person with a 25% or larger share must act as the “designated manager” of the fast food restaurant and supervise the store on a daily basis. Zaxby`s offers chicken fingers, wings, sandwiches and salads. The company was founded in 1990 by childhood friends Zach McLeroy and Tony Townley in Statesboro, Georgia. They also offer franchise opportunities. As of 2018, Zaxby`s operates 574 franchises in the United States. 11.

Transfer Fee (License Agreement): 50% of the initial franchise fee then in effect Zaxby`s franchise fee is $35,000 per restaurant. Franchisees are expected to have a net worth of more than $700,000, more than half of which are liquid assets. The initial investment ranges from $284,000 to $664,300. A continuous license fee of 6% of net sales is also charged. Training Overview: The Designated Manager and three of the Certified Managers (or four of the Certified Managers if the Designated Manager is not serving as the Certified Manager for the restaurant) must attend and successfully complete the Initial Management Training Program to the satisfaction of the franchisor. The training program includes: (i) the first phase, the basics of the restaurant; (ii) the second phase, basic management training; and (iii) the third phase, the foundations of culture and leadership. Only the designated client must complete Phase Three. Lessons from the first and second phases are conducted online through Zaxby University, which is available at all times. The third phase is offered every two or three weeks at the franchisor`s offices in Athens, Georgia, or, if desired, online through Zaxby University.

The first and second phase on-the-job training portions are offered weekly at a certified training restaurant designated by the franchisor and which may be operated by its franchisees or affiliates. The franchisor also requires four certified managers to participate in additional programs or regular additional training to their satisfaction, if necessary from time to time, at least 60 days in advance. The designated customer is also required to attend a maximum of two Zaxby franchisee meetings each year after at least 60 days in advance. CEO Zach W. McLeroy founded Zaxby`s in 1990 with no intention of expanding his business. However, his restaurant proved so popular that he launched the franchise after just four years. Zaxby`s consists primarily of franchised locations and today has over 500 locations. Contact us to unlock your franchise page to add content and get leads! To calculate the income a franchise owner can earn from Zaxby`s franchise, factors such as location, size, etc. may vary. On the other hand, as a business owner, your goals are to maintain the quality of service while streaming sales are high and expenses are low. .