Applebee's vs Zaxby's Franchise Comparison

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

Start-Up Costs and Fees

 
Applebee's Franchise
Zaxby's Franchise
Investment $2,009,038 - $8,267,250 $343,200 - $695,200
Franchise Fee $35,000 $35,000
Royalty Fee 4% initially, 5% possible after 6%
Advertising Fee not less than 4% 2.87%-5%
Year Founded 1980 1990
Year Franchised 2014 1994
Term Of Agreement - -
Term Of Agreement - -
Renewal Fee - -


Business Experience Requirements

 
Applebee's Franchise
Zaxby's Franchise
Experience Our Ideal Franchise Partner -Is committed to a long term franchise relationship built on trust and respect -Knows how to build a brand -Understands that accessible pricing and value are core components of casual dining -Has prior hospitality experience or knowledge, particularly in critical areas like supply chain, quality assurance, real estate development, and marketing -Has or will have infrastructure dedicated to the development of our brand -Has material liquidity and net worth, with access to capital -Has a track record of developing multi-unit restaurant systems 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

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

Training & Support

 
Applebee's 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

 
Applebee's Franchise
Zaxby's Franchise
US Expansion Yes Yes
Canada Expansion No -
International Expansion Yes -

Start-Up Costs and Fees Mobile

Investment
Applebee's Franchise
$2,009,038 - $8,267,250
Zaxby's Franchise
$343,200 - $695,200
Franchise Fee
Applebee's Franchise
$35,000
Zaxby's Franchise
$35,000
Royalty Fee
Applebee's Franchise
4% initially, 5% possible after
Zaxby's Franchise
6%
Advertising Fee
Applebee's Franchise
not less than 4%
Zaxby's Franchise
2.87%-5%
Year Founded
Applebee's Franchise
1980
Zaxby's Franchise
1990
Year Franchised
Applebee's Franchise
2014
Zaxby's Franchise
1994
Term Of Agreement
Applebee's Franchise
-
Zaxby's Franchise
-
Renewal Fee
Applebee's Franchise
-
Zaxby's Franchise
-


Business Experience Requirements

Experience
Applebee's Franchise
Our Ideal Franchise Partner -Is committed to a long term franchise relationship built on trust and respect -Knows how to build a brand -Understands that accessible pricing and value are core components of casual dining -Has prior hospitality experience or knowledge, particularly in critical areas like supply chain, quality assurance, real estate development, and marketing -Has or will have infrastructure dedicated to the development of our brand -Has material liquidity and net worth, with access to capital -Has a track record of developing multi-unit restaurant systems
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
Applebee's Franchise
-/-
Zaxby's Franchise
-/-
Start-up Costs
Applebee's Franchise
-/-
Zaxby's Franchise
-/-
Equipment
Applebee's Franchise
-/-
Zaxby's Franchise
-/-
Inventory
Applebee's Franchise
-/-
Zaxby's Franchise
-/-
Receivables
Applebee's Franchise
-/-
Zaxby's Franchise
-/-
Payroll
Applebee's Franchise
-/-
Zaxby's Franchise
-/Yes

Training & Support

Training
Applebee's 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
Applebee's Franchise
-
Zaxby's Franchise
-
Marketing
Applebee's Franchise
-
Zaxby's Franchise
-
Operations
Applebee's Franchise
-
Zaxby's Franchise
-

Expansion Plans

US Expansion
Applebee's Franchise
Yes
Zaxby's Franchise
Yes
Canada Expansion
Applebee's Franchise
No
Zaxby's Franchise
-
International Expansion
Applebee's Franchise
Yes
Zaxby's Franchise
-

Company Overviews

About Applebee's

Applebee's is the largest casual dining chain in the world with sales of $4.7 billion in 2006. Already the business staple of friendly casual dining, Applebee's is pursuing expansion opportunities, and is looking for individuals/firms with a serious interest in developing our successful brand internationally. For years Applebee's has embraced neighborhood culture, providing high-quality food and drinks in a friendly and informal atmosphere. Compared to the competition, Applebee's consistently delivers food to the consumer faster as well as more affordably. We plan to take this same mantra abroad, creating a warm, inviting dining experience designed around location-specific demographics and customer preference information.

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#96 on Franchise Rankings.com

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.