Franchising

Zaxby's continues to expand out west

provided

September 6, 2023

Zaxby's, a 930-unit brand based in Georgia, has signed a deal with husband and wife entrepreneurs Brian and Jessica Nelson to enter Arizona, marking the fast casual brand's 21st state. The couple will develop six locations in the next five years in the East Valley of Phoenix, which encompasses the Queen Creek, Chandler, Gilbert and Mesa areas.

"This is such an exciting time for us," Bert Lane, Zaxby's VP of Development, said in a company press release. "Not only are we seeing growth in our tried-and-true Mid-Atlantic states and Southeast, but we're thrilled to expand our footprint in the western part of the United States."

Incentivizing growth
Zaxby's has sold 51 locations over the past year and is on pace to surpass 950 units by the end of 2023. Many new franchisees are taking advantage of its incentive program, which includes Select Market Incentives like discounts on the standard royalty of 6%, allowing franchisees the ability to ramp up marketing to drive sales performance in their new markets, Lane said. The plan calls for no royalties paid in the first year, a half-price 3% royalty in the second year, and a 6% royalty in year three. Additionally, Zaxby's is refunding the license fee of $35,000 upon store opening per schedule.

"Our robust franchise model appeals to driven entrepreneurs," Lane said. "We not only equip our franchise partners for their business journey, but have also consistently endeavored to preserve the brand's unique character. It's crucial for us to collaborate with individuals who uphold the lofty standards we've established."