News

Zaxby's headed west with 18-unit deal

June 28, 2013

Zaxby's Franchising Inc. has reached a multi-unit franchising agreement with MJM 5G LLC, a multiconcept owner/operator restaurant group, which will give the group exclusive rights for the state of Utah. Under the terms of the agreement, MJM 5G will open 18 Zaxby's restaurants in the next five years, with the first two locations slated to open in 2013. The deal is a major milestone for Zaxby's, the Athens, Ga.-based brand, as it continues its strategic westward expansion across the U.S., becoming a national brand, said Zach McLeroy, CEO and co-founder of Zaxby's.

In signing the licensing agreement with Zaxby's, MJM 5G cofounders Mike Cummings and brothers Jeff and Ryan Howes will bring the franchise to full capacity in Utah. The majority of the restaurants will be located in the Salt Lake Valley and Greater Salt Lake City area, which has 85 percent of the state's population.

"It's a good fit for us — MJM 5G has great franchise experience and people, and Utah is a wide-open market for fast casual dining concepts," McLeroy said. "The regional economy is good, but there's not a lot of competition in the chicken segment and we'll capitalize on that.We're expanding westward, and solidifying our brand foundation market by market as we go, so a multi-unit licensing agreement that covers the entire state will give us strategic efficiencies in marketing and awareness as our new partners build out the operating area."

The MJM 5G partners have built and operated 30 Five Guys Burgers and Fries franchises and have more than 50 years of restaurant, finance and business development experience among them. Cummings brings restaurant business management and operational experience, while the Howes brothers have finance and real-estate development backgrounds.

 "Zaxby's has a cult following in the South, and we believe it'll be successful nationwide as well," said Ryan Howes. "We did a lot of research — and we ate a lot of chicken before we selected Zaxby's. The high brand standards and the focus on customers were critical."

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