Ruby Tuesday vs Zaxby's Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Ruby Tuesday vs Zaxby's including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees

 
Ruby Tuesday Franchise
Zaxby's Franchise
Investment $1,559,650 - $3,877,400 $343,200 - $695,200
Franchise Fee $35,000 $35,000
Royalty Fee 4% of gross sales 6%
Advertising Fee 1.5% of gross sales 2.87%-5%
Year Founded 1972 1990
Year Franchised 1997 1994
Term Of Agreement - -
Term Of Agreement - -
Renewal Fee - -


Business Experience Requirements

 
Ruby Tuesday Franchise
Zaxby's Franchise
Experience - Prospective Franchisees must meet the following criteria to be considered: Collective net worth of at least $1,000,000, with liquid assets greater than $500,000 (liquidity being defined as cash or any asset that could be converted to cash within ten business days). Ability to satisfactorily pass background checks for the following: reasonable credit worthiness, no criminal convictions, no history of extensive litigation, and satisfactory motor vehicle report. Willingness of all investors to personally guarantee any obligations that are required under the license agreement. Willingness to make a commitment to this venture within 60 – 90 days of signing a license agreement. Belief that guest service is of critical importance in restaurant operations.

Financing Options

 
Ruby Tuesday Franchise
Zaxby's Franchise
  In-House/3rd Party In-House/3rd Party
Franchise Fees -/- -/-
Start-up Costs -/- -/-
Equipment -/- -/-
Inventory -/- -/-
Receivables -/- -/-
Payroll -/- -/Yes

Training & Support

 
Ruby Tuesday Franchise
Zaxby's Franchise
Training - The initial training program is eight weeks long, consisting of a one-week orientation phase at Zaxby's Franchising, Inc.'s training center, three two-week phases at a training restaurant and the final one-week phase back at ZFI's training center. Ongoing support and training updates, in addition to other business development practices - including onsite inspections - are conducted regularly throughout the franchise system.
Support - -
Marketing - -
Operations - -

Expansion Plans

 
Ruby Tuesday Franchise
Zaxby's Franchise
US Expansion - Yes
Canada Expansion No -
International Expansion No -

Start-Up Costs and Fees Mobile

Investment
Ruby Tuesday Franchise
$1,559,650 - $3,877,400
Zaxby's Franchise
$343,200 - $695,200
Franchise Fee
Ruby Tuesday Franchise
$35,000
Zaxby's Franchise
$35,000
Royalty Fee
Ruby Tuesday Franchise
4% of gross sales
Zaxby's Franchise
6%
Advertising Fee
Ruby Tuesday Franchise
1.5% of gross sales
Zaxby's Franchise
2.87%-5%
Year Founded
Ruby Tuesday Franchise
1972
Zaxby's Franchise
1990
Year Franchised
Ruby Tuesday Franchise
1997
Zaxby's Franchise
1994
Term Of Agreement
Ruby Tuesday Franchise
-
Zaxby's Franchise
-
Renewal Fee
Ruby Tuesday Franchise
-
Zaxby's Franchise
-


Business Experience Requirements

Experience
Ruby Tuesday Franchise
-
Zaxby's Franchise
Prospective Franchisees must meet the following criteria to be considered: Collective net worth of at least $1,000,000, with liquid assets greater than $500,000 (liquidity being defined as cash or any asset that could be converted to cash within ten business days). Ability to satisfactorily pass background checks for the following: reasonable credit worthiness, no criminal convictions, no history of extensive litigation, and satisfactory motor vehicle report. Willingness of all investors to personally guarantee any obligations that are required under the license agreement. Willingness to make a commitment to this venture within 60 – 90 days of signing a license agreement. Belief that guest service is of critical importance in restaurant operations.

Financing Options

  In-House/3rd Party
Franchise Fees
Ruby Tuesday Franchise
-/-
Zaxby's Franchise
-/-
Start-up Costs
Ruby Tuesday Franchise
-/-
Zaxby's Franchise
-/-
Equipment
Ruby Tuesday Franchise
-/-
Zaxby's Franchise
-/-
Inventory
Ruby Tuesday Franchise
-/-
Zaxby's Franchise
-/-
Receivables
Ruby Tuesday Franchise
-/-
Zaxby's Franchise
-/-
Payroll
Ruby Tuesday Franchise
-/-
Zaxby's Franchise
-/Yes

Training & Support

Training
Ruby Tuesday Franchise
-
Zaxby's Franchise
The initial training program is eight weeks long, consisting of a one-week orientation phase at Zaxby's Franchising, Inc.'s training center, three two-week phases at a training restaurant and the final one-week phase back at ZFI's training center. Ongoing support and training updates, in addition to other business development practices - including onsite inspections - are conducted regularly throughout the franchise system.
Support
Ruby Tuesday Franchise
-
Zaxby's Franchise
-
Marketing
Ruby Tuesday Franchise
-
Zaxby's Franchise
-
Operations
Ruby Tuesday Franchise
-
Zaxby's Franchise
-

Expansion Plans

US Expansion
Ruby Tuesday Franchise
-
Zaxby's Franchise
Yes
Canada Expansion
Ruby Tuesday Franchise
No
Zaxby's Franchise
-
International Expansion
Ruby Tuesday Franchise
No
Zaxby's Franchise
-

Company Overviews

About Ruby Tuesday

As of December 1, 2015, there were 733 Ruby Tuesday restaurants in 44 states, 12 foreign countries, and Guam, in addition to 28 Company-owned and/or franchise Lime Fresh brand restaurants in six states and the District of Columbia. As of December 2, 2014, we owned and operated 663 Ruby Tuesday restaurants and franchised 81 Ruby Tuesday restaurants, comprised of 30 domestic and 51 international restaurants. We also owned and operated 20 Lime Fresh restaurants and franchised eight Lime Fresh restaurants. Our Company-owned and operated restaurants are concentrated primarily in the Southeast, Northeast, Mid-Atlantic, and Midwest of the United States, which we consider to be our core markets. Joining the Ruby Tuesday franchise family will open the door to an exciting future. Since 1972, we've set the highest standards in culinary excellence and restaurant innovations. We've positioned ourselves as a leader in restaurant technology and achieved the highest level of operational expertise. Franchise opportunities are now open for interested investors and potential restaurant franchisees in many areas of the world, both internationally and domestically.

About Zaxby's

Zaxby's Franchising, Inc., actively seeks highly qualified individuals be become licensees. Prior business experience, financial qualifications, motivation, team spirit and a track record of personal success are all important factors in our evaluation process. Prospective licensees must meet the following criteria to be considered: Collective net worth of at least $700,000, with liquid assets greater than $400,000 (liquidity being defined as cash or any asset that could be converted to cash within ten business days). Ability to satisfactorily pass background checks for the following: reasonable credit worthiness, no criminal convictions, no history of extensive litigation, and satisfactory motor vehicle report. Willingness of all investors to personally guarantee any obligations that are required under the license agreement. Willingness to make a commitment to this venture within 60 - 90 days of signing a license agreement. Belief that guest service is of critical importance in restaurant operations.
The Zaxby's Mission Statement - Consistently Create Encore Experiences That Enrich Lives One Person At A Time - recognizes the value of all individuals.

ZFI is committed to developing a diverse community of licensees and, in that regard, the Zaxby's franchise opportunity is open to all qualified applicants, regardless of age, gender, race or ethnicity.

The total investment necessary to begin operation of a Zaxby’s franchised business is $343,200 to $695,200. This includes $40,200 to $45,000 that must be paid to the franchisor or its affiliates. In addition, if you enter into a Multi-Restaurant Development Agreement to develop more than one Zaxby’s restaurant, you must pay the franchisor a fee of $17,500 for each Zaxby’s restaurant scheduled for development and subsequently must pay an additional $17,500 upon execution of the License Agreement for each Zaxby’s restaurant, which amounts are credited towards the initial franchise fee for each restaurant.

#148 in Franchise 500 for 2021.  Not in Franchise 500 for 2020.