Five Guys vs McDonald'sFranchise Comparison 2026
Five Guys and McDonald's represent two different approaches in the QSR space. Here's how they compare on investment costs, fees, revenue potential, and market presence.
Quick Comparison
Side-by-Side Comparison
| Metric | Five Guys | McDonald's | Difference |
|---|---|---|---|
| Franchise Fee | $25,000 | $45,000 | -44% |
| Total Investment (Low) | $306,000 | $1.3M | -76% |
| Total Investment (High) | $641,000 | $2.3M | -72% |
| Cash Required | $300,000 | $500,000 | -40% |
| Royalty Rate | 6.0% | 4.0% | Higher |
| Advertising Fee | 1.5% | 4.0% | Lower |
| Estimated Revenue | $1.4M | $2.9M | -52% |
| Number of Locations | 1,700 | 40,275 | Fewer |
| Year Founded | 1986 | 1955 | Newer |
| Training Duration | 3 weeks | 9 weeks | Shorter |
Note: Data sourced from public FDD filings and industry reports. Actual costs vary by location, real estate, and format. Always review current FDD Item 7 and Item 19 disclosures before making investment decisions.
Detailed Analysis
About Five Guys
Premium burger concept with fresh ingredients and no freezers. Higher food costs but strong brand loyalty and per-unit sales.
About McDonald's
Global fast food leader known for burgers, fries, and breakfast items. Extensive support system and brand recognition.
Investment Comparison
Five Guys requires a lower initial investment (avg $473,500) compared to McDonald's(avg $1.8M), making it more accessible for first-time franchisees. However, McDonald's may offer higher revenue potential.
Fee Structure
Five Guys has lower ongoing fees (7.5% total) compared to McDonald's(8.0% total), which means more of each sales dollar stays with the franchisee. Over time, this can significantly impact profitability.
Market Position
McDonald's has a significantly larger footprint with 40,275 locations compared to Five Guys's 1,700. This larger network typically means better brand recognition, more purchasing power, and stronger operational support.
Frequently Asked Questions
How much does it cost to open a Five Guys vs McDonald's franchise?
Five Guys requires an initial investment of $306,000 to $641,000, while McDonald's requires $1.3M to $2.3M. Five Guys has the lower average investment at $473,500.
What are the ongoing fees for Five Guys vs McDonald's?
Five Guys charges a 6.0% royalty plus 1.5% advertising fee (7.5% total). McDonald's charges 4.0% royalty plus 4.0% advertising fee (8.0% total). Five Guys has lower total ongoing fees.
Which franchise makes more money: Five Guys or McDonald's?
Based on estimated average unit revenue, McDonald's generates $2.9M per location compared to $1.4M for Five Guys. However, profitability depends on many factors including local market, operating costs, and management.
How many locations does Five Guys have vs McDonald's?
Five Guys has 1,700 locations, while McDonald's has 40,275 locations. McDonald's has the larger footprint, which typically means stronger brand recognition and supply chain advantages.
Is Five Guys or McDonald's a better franchise investment in 2026?
Both Five Guys and McDonald's are established QSR brands with proven models. Five Guys offers a lower entry point, while McDonald's shows higher average revenue. The best choice depends on your available capital, local market conditions, and personal goals. Always review the current FDD before making investment decisions.
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