Zaxby’s has sold 51 new locations this year and is on pace to surpass 950 new units by the end of the fiscal year.
Being first-time franchise operators and committing to opening a group of restaurants in an untested market would likely turn a lot of people into chickens.
Not Jessica Nelson and her husband, Brian Nelson. They love challenges and are convinced Zaxby’s, the rapidly growing Georgia-based QSR chicken brand with more than 930 locations in 17 states, will be a huge hit in Phoenix. In fact, they are willing to go all in on that challenge and stake their franchising lives on it.
“Yes, it’s a little daunting to open six restaurants in five years with no experience doing that, but we’re suckers for a challenge. … We’re pumped and feel we couldn’t have picked a better brand to take that chance with,” said Jessica Nelson about the multi-unit deal they recently signed with Zaxby’s.
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The husband-wife team of Brian and Jessica Nelson have signed an agreement to open six Zaxby's in the Phoenix market in the next five years.
The Nelsons signed an agreement to open a half dozen Zaxby’s in the East Valley of Phoenix over the next five years. They’ve already pinpointed the sight of their first two locations in two of the city’s fastest-growing metropolitan communities. Right now, their first restaurant is scheduled to open in the fall of 2024 in Queen Creek, Arizona, with the second location to open in the spring of 2025 in Mesa, Arizona. The sites of their next four locations have yet to be determined.
In their territory agreement, the Nelsons took advantage of new incentives Zaxby’s offered to new franchisees in selective markets. That plan calls for no royalties paid in the first year, a half-price 3 percent royalty in the second year and a standard 6 percent royalty paid in year three. Additionally, Zaxby’s will refund the Nelsons’ full license fee of $35,000 upon each of their stores opening on schedule.
The total midpoint investment for a Zaxby’s franchise is estimated at about $2.3 million to build and open a 3,000-square-foot restaurant with a drive-thru lane and seating for 52 inside.
While Jessica Nelson said the Zaxby’s incentives will help ease some of their start-up costs, they were already sold on the brand having lived in Florida and Tennessee, two states where Zaxby’s has grown in popularity. She said when the family took road trips in the Southeast, they always made it a point to stop at Zaxby’s.
A prototype Zexby's franchise location is 3,000-square-foot restaurant with a drive-thru lane and seating for 52 inside.
“I work in the healthcare industry and I’m very particular about what I eat. Zaxby’s chicken is the one fast food I’ll eat because I know it’s high quality. Plus, it tastes really good,” said Jessica Nelson, an online health and fitness coach.
Although they are newbies when it comes to restaurant ownership, the Nelsons have extensive experience in the space. They both waited tables while living in Jacksonville, Florida, with Brian Nelson first getting franchising exposure when he managed a Firehouse Subs shop and then a Copeland’s of New Orleans steakhouse in the Sunshine State for a number of years.
The Nelsons’ entrepreneurship journey took a few detours along the way when they tried flipping houses in Florida at one point and considered buying and operating a marina and campground in Tennessee. But eventually the couple decided that franchising was what they really wanted to do, and reached out to Zaxby’s about bringing the brand to Arizona.
“We moved four times in four years with a newborn and I told my husband ‘We are not moving again.’ So, we chose Arizona to settle down and plant our roots, and when we got a call from Zaxby’s about their plans to expand in the Phoenix area, everything just came together for us,” Jessica Nelson said.
Zaxby’s, which has sold 51 new locations this year and is on pace to surpass 950 new units by the end of the fiscal year, is equally excited to partner with the Nelsons and break into a new market.
Zaxby's Vice President of Development Bert Lane
“This is such an exciting time for us,” says Bert Lane, vice president of development at Zaxby’s. “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.”
Zaxby’s newest franchise operators have already determined their roles in their business venture. While Brian Nelson will take more of a hands-on approach as the on-site manager of their first two locations, Jessica Nelson said she will take over most of the marketing and bookkeeping duties while “being ready to jump in wherever needed” at their restaurants.
Asked what their biggest concerns are as first-time franchisees and restaurant owners, they said it will be finding the reliable and devoted restaurant employees in a tight job market. But, then again, these husband-and-wife franchisees do not sound too fazed by the challenge.
"We are looking for our next venture to pour our heart, soul, knowledge and resources into,” Jessica Nelson said.