Zaxby’s Franchise Prices, Charges, Revenues, Earnings (2023 Assessment)

On this unique Franchise Chatter FDD Speak put up, you’ll study the next:

Part I – Estimated preliminary funding (franchise prices) for a Zaxby’s franchise, primarily based on Merchandise 7 of the corporate’s 2022 FDD

Part II – Preliminary franchise payment, royalty payment, and advertising payment for a Zaxby’s franchise, primarily based on Objects 5 and 6 of the corporate’s 2022 FDD

Part III – Variety of franchised and company-owned Zaxby’s shops firstly of the yr and the tip of the yr for 2019, 2020, and 2021, primarily based on Merchandise 20 of the corporate’s 2022 FDD

Part IV – Information updates on the Zaxby’s franchise alternative

Part V – Presentation and evaluation of Zaxby’s monetary efficiency representations (common revenues and/or income), primarily based on Merchandise 19 of the corporate’s 2022 FDD, together with data on the:

• 2021 common gross revenues, price of gross sales (price of products bought, labor), gross revenue, different working bills (royalties, different working bills, promoting bills, phone and utilities, skilled charges, lease and occupancy expense), and EBITDA from operations for the 727 franchised Zaxby’s eating places that had been open and working for at the least 51 weeks of the 52-week fiscal yr ending on December 26, 2021, by quartile

• 2021 common and median EBITDA from operations for the 727 franchised Zaxby’s eating places that had been open and working for at the least 51 weeks of the 52-week fiscal yr ending on December 26, 2021, by quartile

• 2021 common, median, lowest, and highest gross revenues for the 727 franchised Zaxby’s eating places that had been open and working for at the least 51 weeks of the 52-week fiscal yr ending on December 26, 2021, by quartile

• 2019, 2020, and 2021 common, median, lowest, and highest gross revenues for the franchised Zaxby’s eating places that had been open and working for all 52 weeks of the relevant fiscal yr (the 2021 knowledge consists of the monetary efficiency of franchised Zaxby’s eating places that had been open and working for at the least 51 of the 52 weeks of fiscal yr 2021)

Part VI – Key ratios, comparables, computations, and analyses for the Zaxby’s franchise alternative (unique content material for Platinum subscribers)

Part I – Zaxby’s Franchise Prices

• Preliminary Franchise Price:  $35,000
• Lease Deposit and Fee:  $10,000 to $19,000
• Utility Deposits:  $0 to $9,000
• Preliminary Stock:  $5,000 to $22,000
• Furnishings, Fixtures, and Tools:  $330,000 to $399,000
• Know-how System:  $60,200 to $92,200
• Signage:  $23,000 to $134,000
• Preliminary Advertising Contribution:  $5,200 to $10,000
• Insurance coverage:  $1,000 to $17,000
• Permits and Licenses:  $2,000 to $24,000
• Accounting and Authorized Charges:  $500 to $25,000
• Printing/Enterprise Provides:  $300 to $1,000
• Uniforms:  $1,500 to $5,000
• Coaching Bills:  $10,000 to $25,000
• Pre-Opening Payroll:  $10,000 to $37,000
• Extra Funds for 3 Months:  $1,000 to $96,000
• Whole Estimated Zaxby’s Franchise Prices:  $494,700 to $950,200

Part II – Zaxby’s Preliminary Franchise Price, Royalty Price, and Advertising Price

• Preliminary Franchise Price:  $35,000
• Royalty:  6% of Gross Gross sales for the previous week
• Weekly Advertising Contributions:  as much as 4% of Gross Gross sales per week (which incorporates the Nationwide Advertising Fund Contribution and both the Co-op Advertising Contribution or the Multi-DMA Promoting Contribution, as described beneath)
• Nationwide Advertising Contribution:  presently, 1.5% of Gross Gross sales per week (could also be modified by Zaxby’s in its discretion however is not going to exceed 3.5% of Gross Gross sales)
• Co-op Advertising Contribution or Multi-DMA Promoting Contribution:  as much as 3% of Gross Gross sales per week (as decided by Co-op, Zaxby’s, or its designated affiliate); nevertheless, the members of your Co-op could vote to extend the Co-op Advertising Contribution above the three% cap

Part III – Variety of Franchised and Firm-Owned Zaxby’s Shops

Franchised

2019

• Shops on the Begin of the Yr:  757
• Shops on the Finish of the Yr:  756
• Web Change:  -1

2020

• Shops on the Begin of the Yr:  756
• Shops on the Finish of the Yr:  762
• Web Change:  +6

2021

• Shops on the Begin of the Yr:  762
• Shops on the Finish of the Yr:  765
• Web Change:  +3

Firm-Owned

2019

• Shops on the Begin of the Yr:  141
• Shops on the Finish of the Yr:  149
• Web Change:  +8

2020

• Shops on the Begin of the Yr:  149
• Shops on the Finish of the Yr:  146
• Web Change:  -3

2021

• Shops on the Begin of the Yr:  146
• Shops on the Finish of the Yr:  146
• Web Change:  0

Part IV – Information Updates on the Zaxby’s Franchise

Part V – Monetary Efficiency Representations (Common Revenues and/or Earnings) for the Zaxby’s Franchise (Merchandise 19, 2022 FDD)

• As of December 26, 2021, Zaxby’s had 911 open and working Eating places. Of those 911 Eating places, 765 of those Eating places had been owned and operated by third-party franchisees that aren’t owned or managed by Zaxby’s associates (the “Franchised Eating places”).

• The information utilized in Elements 1 and a couple of are primarily based solely on the working outcomes of the 727 Franchised Eating places that had been open and working for at the least 51 weeks of the 52-week fiscal yr ending on December 26, 2021 (the “Measured Eating places”).

• Zaxby’s didn’t embrace within the evaluation (a) 146 Eating places that had been owned or managed by its affiliate, ZAX; (b) 29 Franchised Eating places that quickly closed for multiple week throughout the interval, and (c) 9 Franchised Eating places that opened throughout the interval. No Restaurant completely closed throughout its first 12 months of operation.

• All the Measured Eating places are free-standing Eating places that supply considerably the identical services and products as are presently utilized in the entire Franchised Eating places.

• For functions of this Merchandise 19, the time period “Gross Revenues” means all revenues acquired by a Restaurant as cost for all gross sales generated by way of the Restaurant, whether or not such cost is in money, by alternate or for credit score (and, if for credit score, no matter assortment), together with revenues acquired from the operation of merchandising machines or different mechanical units, much less any revenues taxes collected and transmitted to acceptable taxing authorities.

• Besides as in any other case famous in Half 3, this Merchandise 19 makes use of knowledge for the 52-week interval starting on December 27, 2020 and ending on December 26, 2021 (“Fiscal Yr 2021”).

• The monetary efficiency illustration is an historic illustration in regards to the franchise system’s Eating places.

Half 1 – Evaluation of Gross Revenues and Working Prices for Measured Eating places in Fiscal Yr 2021

• Elements 1 and a couple of comprise an evaluation of Gross Revenues and sure working prices and bills (price of products bought, labor prices, and different working bills) of all of the Measured Eating places for Fiscal Yr 2021.

• In Elements 1 and a couple of, the Measured Eating places had been divided into 4 classes primarily based on the quantity of Gross Revenues for every Measured Restaurant, that are categorized as: Prime Quartile, Second Quartile, Third Quartile, and Backside Quartile.

• In Half 1, the common Gross Revenues and common working prices and bills for every of the classes was calculated by including the Gross Revenues or sure working prices and bills, as relevant, of all Measured Eating places inside every quartile and dividing by the full variety of Measured Eating places inside such quartile. The common Gross Revenues and prices and bills in every quartile had been then in comparison with the common Gross Revenues in such quartile and expressed as a share.

Prime 25%

Gross Income:  $3,468,473 (100.0%)

Price of Gross sales

• Subtotal Meals:  $1,152,946 (33.2%)
• Whole Price of Items Bought:  $1,276,115 (36.8%)
• Labor:  $742,689 (21.4%)

Gross Revenue:  $1,449,670 (41.8%)

Different Working Bills

• Royalties:  $205,020 (5.9%)
• Different Working Bills:  $132,786 (3.8%)
• Promoting Bills:  $126,721 (3.7%)
• Phone and Utilities:  $50,756 (1.5%)
• Skilled Charges:  $46,435 (1.3%)
• Hire and Occupancy Expense:  $187,009 (5.4%)
• Whole Different Working Bills:  $748,727 (21.6%)

Whole Bills:  $2,767,530 (79.8%)

EBITDA from Operations:  $700,943 (20.2%)

Second 25%

Gross Income:  $2,724,487 (100.0%)

Price of Gross sales

• Subtotal Meals:  $907,415 (33.3%)
• Whole Price of Items Bought:  $1,001,586 (36.8%)
• Labor:  $617,052 (22.6%)

Gross Revenue:  $1,105,850 (40.6%)

Different Working Bills

• Royalties:  $159,079 (5.8%)
• Different Working Bills:  $104,134 (3.8%)
• Promoting Bills:  $99,618 (3.7%)
• Phone and Utilities:  $48,044 (1.8%)
• Skilled Charges:  $39,027 (1.4%)
• Hire and Occupancy Expense:  $184,435 (6.8%)
• Whole Different Working Bills:  $634,339 (23.3%)

Whole Bills:  $2,252,976 (82.7%)

EBITDA from Operations:  $471,511 (17.3%)

Third 25%

Gross Income:  $2,274,123 (100.0%)

Price of Gross sales

• Subtotal Meals:  $759,455 (33.4%)
• Whole Price of Items Bought:  $833,322 (36.6%)
• Labor:  $529,864 (23.3%)

Gross Revenue:  $910,936 (40.1%)

Different Working Bills

• Royalties:  $134,037 (5.9%)
• Different Working Bills:  $108,700 (4.8%)
• Promoting Bills:  $81,963 (3.6%)
• Phone and Utilities:  $46,738 (2.1%)
• Skilled Charges:  $34,194 (1.5%)
• Hire and Occupancy Expense:  $168,068 (7.4%)
• Whole Different Working Bills:  $573,701 (25.2%)

Whole Bills:  $1,936,887 (85.2%)

EBITDA from Operations:  $337,235 (14.8%)

Backside 25%

Gross Income:  $1,708,846 (100.0%)

Price of Gross sales

• Subtotal Meals:  $576,085 (33.7%)
• Whole Price of Items Bought:  $639,460 (37.4%)
• Labor:  $427,298 (25.0%)

Gross Revenue:  $642,088 (37.6%)

Different Working Bills

• Royalties:  $94,197 (5.5%)
• Different Working Bills:  $83,076 (4.9%)
• Promoting Bills:  $59,358 (3.5%)
• Phone and Utilities:  $41,668 (2.4%)
• Skilled Charges:  $24,269 (1.4%)
• Hire and Occupancy Expense:  $163,755 (9.6%)
• Whole Different Working Bills:  $466,323 (27.3%)

Whole Bills:  $1,533,081 (89.7%)

EBITDA from Operations:  $175,765 (10.3%)

All Measured Eating places

Gross Income:  $2,543,982 (100.0%)

Price of Gross sales

• Subtotal Meals:  $848,975 (33.4%)
• Whole Price of Items Bought:  $937,621 (36.9%)
• Labor:  $579,226 (22.8%)

Gross Revenue:  $1,027,135 (40.4%)

Different Working Bills

• Royalties:  $148,083 (5.8%)
• Different Working Bills:  $107,174 (4.2%)
• Promoting Bills:  $91,915 (3.6%)
• Phone and Utilities:  $46,802 (1.8%)
• Skilled Charges:  $35,981 (1.4%)
• Hire and Occupancy Expense:  $175,817 (6.9%)
• Whole Different Working Bills:  $605,772 (23.8%)

Whole Bills:  $2,122,619 (83.4%)

EBITDA from Operations:  $421,363 (16.6%)

• Half 1 isn’t a revenue and loss assertion. The price and expense data on this Merchandise 19 pertains solely to the price of items bought, labor prices, and different working bills skilled by the Measured Eating places. You might expertise capitalized or different steadiness sheet expenditures that aren’t included on this price and expense data, equivalent to the price of further or alternative tools, debt funds, and curiosity bills.

• Prices and bills within the operation of a Restaurant will differ from franchisee to franchisee and from location to location and can rely upon seasonal, native, and different components, just like the franchisee’s effectivity within the utilization of merchandise, the price of transportation, and the fluctuation in market costs for meals and different merchandise.

• For functions of this Merchandise 19, the time period “EBITDA” shall imply Gross Revenues much less price of products bought, labor prices (excluding officer salaries), and all different working bills (excluding curiosity, taxes, depreciation, and amortization).

• The next desk discloses the quantity and share of Measured Eating places in every quartile above the common EBITDA disclosed in Half 1 for every quartile and the median EBITDA for every quartile:

Prime Quartile

• Restaurant Rely:  182
• Common EBITDA from Operations:  $700,943
• Variety of Eating places in Quartile Above Common EBITDA for Quartile:  87
• Share of Eating places in Quartile Above Common EBITDA for Quartile:  47.8%
• Median EBITDA from Operations:  $691,596

Second Quartile

• Restaurant Rely:  182
• Common EBITDA from Operations:  $471,511
• Variety of Eating places in Quartile Above Common EBITDA for Quartile:  85
• Share of Eating places in Quartile Above Common EBITDA for Quartile:  46.7%
• Median EBITDA from Operations:  $460,423

Third Quartile

• Restaurant Rely:  181
• Common EBITDA from Operations:  $337,235
• Variety of Eating places in Quartile Above Common EBITDA for Quartile:  91
• Share of Eating places in Quartile Above Common EBITDA for Quartile:  50.3%
• Median EBITDA from Operations:  $345,126

Backside Quartile

• Restaurant Rely:  182
• Common EBITDA from Operations:  $175,765
• Variety of Eating places in Quartile Above Common EBITDA for Quartile:  89
• Share of Eating places in Quartile Above Common EBITDA for Quartile:  48.9%
• Median EBITDA from Operations:  $170,020

• Labor prices in Half 1 don’t embrace officers’ salaries and advantages for any Measured Restaurant that captures or acknowledges that expense.

• Labor prices will differ from location to location and can rely upon native components, together with (with out limitation) native minimal wage legal guidelines and native labor market circumstances.

• As a result of you’ll need a sure variety of staff to open and function a Restaurant no matter its Gross Revenues, Eating places which have decrease than common Gross Revenues usually expertise larger than common labor prices as a share of Gross Revenues.

Half 2 – Abstract of Gross Revenues of Measured Eating places in Fiscal Yr 2021

Prime Quartile

• Restaurant Rely:  182
• Common Gross Revenues:  $3,468,473
• Variety of Eating places in Quartile Above Common Gross Revenues for Quartile:  68
• Share of Eating places in Quartile Above Common Gross Revenues for Quartile:  37.4%
• Median Gross Revenues:  $3,340,541
• Lowest Gross Revenues:  $2,986,849
• Highest Gross Revenues:  $5,331,733

Second Quartile

• Restaurant Rely:  182
• Common Gross Revenues:  $2,724,487
• Variety of Eating places in Quartile Above Common Gross Revenues for Quartile:  89
• Share of Eating places in Quartile Above Common Gross Revenues for Quartile:  48.9%
• Median Gross Revenues:  $2,718,075
• Lowest Gross Revenues:  $2,497,295
• Highest Gross Revenues:  $2,981,959

Third Quartile

• Restaurant Rely:  181
• Common Gross Revenues:  $2,274,123
• Variety of Eating places in Quartile Above Common Gross Revenues for Quartile:  94
• Share of Eating places in Quartile Above Common Gross Revenues for Quartile:  51.9%
• Median Gross Revenues:  $2,280,973
• Lowest Gross Revenues:  $2,045,015
• Highest Gross Revenues:  $2,496,077

Backside Quartile

• Restaurant Rely:  182
• Common Gross Revenues:  $1,708,846
• Variety of Eating places in Quartile Above Common Gross Revenues for Quartile:  110
• Share of Eating places in Quartile Above Common Gross Revenues for Quartile:  60.4%
• Median Gross Revenues:  $1,773,573
• Lowest Gross Revenues:  $839,494
• Highest Gross Revenues:  $2,043,866

All Measured Eating places

• Restaurant Rely:  727
• Common Gross Revenues:  $2,544,354
• Variety of Eating places in Quartile Above Common Gross Revenues for Quartile:  344
• Share of Eating places in Quartile Above Common Gross Revenues for Quartile:  47%
• Median Gross Revenues:  $2,497,295
• Lowest Gross Revenues:  $839,494
• Highest Gross Revenues:  $5,331,733

Half 3 – Common Annual Gross Revenues of Franchised Eating places in Fiscal Yr 2019, 2020, and 2021

• Half 3 beneath exhibits the common annual Gross Revenues of Franchised Eating places for Zaxby’s 2019, 2020, and 2021 fiscal years.

2019

• Restaurant Rely:  722
• Common Gross Revenues:  $2,179,984
• Share Change Over Earlier Yr:  –
• Variety of Eating places Above Common Gross Revenues:  334
• Share of Eating places Above Common Gross Revenues:  46.3%
• Median Gross Revenues:  $2,117,443
• Lowest Gross Revenues:  $497,882
• Highest Gross Revenues:  $4,324,891

2020

• Restaurant Rely:  725
• Common Gross Revenues:  $2,256,060
• Share Change Over Earlier Yr:  3.5%
• Variety of Eating places Above Common Gross Revenues:  357
• Share of Eating places Above Common Gross Revenues:  49.2%
• Median Gross Revenues:  $2,237,850
• Lowest Gross Revenues:  $630,400
• Highest Gross Revenues:  $4,284,533

2021

• Restaurant Rely:  727
• Common Gross Revenues:  $2,544,354
• Share Change Over Earlier Yr:  12.8%
• Variety of Eating places Above Common Gross Revenues:  344
• Share of Eating places Above Common Gross Revenues:  47.3%
• Median Gross Revenues:  $2,497,295
• Lowest Gross Revenues:  $839,494
• Highest Gross Revenues:  $5,331,733

• Zaxby’s 2019 fiscal yr started on December 31, 2018 and ended on December 29, 2019.

• Zaxby’s 2020 fiscal yr started on December 30, 2019 and ended on December 27, 2020.

• Zaxby’s 2021 fiscal yr started on December 28, 2020 and ended on December 26, 2021.

• The 2019 and 2020 knowledge consists of the monetary efficiency of Franchised Eating places that had been open and operated for all 52 weeks of the relevant fiscal yr. The 2021 knowledge consists of the monetary efficiency of Franchised Eating places that had been open and operated for at the least 51 of the 52 weeks of Fiscal Yr 2021.

• Some Eating places have bought or earned this quantity. Your particular person outcomes could differ. There isn’t a assurance that you just’ll promote or earn as a lot.

• This Merchandise 19 was ready using knowledge Zaxby’s acquired within the periodic gross sales studies supplied to it by its franchisees and thru day by day polling of Level of Sale (POS) knowledge. Zaxby’s has not independently verified any of the info supplied to it, however its franchisees pay its franchising charges primarily based on such studies. Moreover, Zaxby’s can’t confirm that the knowledge it receives from its franchisees is ready uniformly or that its franchisees correctly allocate prices to a selected class.

Part VI – Zaxby’s Franchise Ratios, Comparables, Computations, and Analyses (Unique Content material for Platinum Subscribers) ⬇️