How Much Does a Five Guys Franchise Cost?
Total investment: $300,000 to $673,000. Here is the complete breakdown of fees, requirements, and what to expect as a Five Guys franchisee.
Five Guys Franchise at a Glance
Five Guys Franchise Overview
Five Guys built its reputation on premium burgers, fresh-cut fries, and a simple, counter-service format. The brand does zero traditional advertising, relying entirely on word-of-mouth and customer loyalty. Five Guys positions itself between traditional fast food and fast casual, with higher price points and a focus on customization (free toppings). The company remains privately held by the Murrell family.
View metrics, industry data, and news coverage for Five Guys
Five Guys Investment Breakdown
Detailed cost breakdown based on current Franchise Disclosure Document (FDD) estimates.
| Cost Category | Low Estimate | High Estimate |
|---|---|---|
| Franchise Fee | $25,000 | $25,000 |
| Leasehold Improvements | $100,000 | $300,000 |
| Equipment & Signage | $80,000 | $200,000 |
| Opening Inventory | $5,000 | $12,000 |
| Training & Pre-Opening | $15,000 | $30,000 |
| Working Capital | $75,000 | $106,000 |
| Total Estimated Investment | $300,000 | $673,000 |
Estimates based on publicly available FDD data. Actual costs vary by location, real estate market, and construction costs. Always review the current FDD Item 7 for exact figures.
Ongoing Fees and Royalties
What you will pay Five Guys on a recurring basis after opening.
| Fee | Amount |
|---|---|
| Royalty Fee | 6% of gross sales |
| Advertising Fund | 2% of gross sales |
| Technology Fee | Varies |
Estimated Annual Fee Impact
Based on the estimated average unit revenue of $1.5M:
Pros and Cons of a Five Guys Franchise
Advantages
- +Strong brand loyalty built on product quality over advertising
- +Moderate total investment ($300K-$673K) with strong AUV ($1.5M)
- +Lowest advertising fee in the dataset at 2%
- +Simple menu reduces operational complexity and waste
- +No traditional advertising keeps costs down while brand grows organically
Considerations
- -$1.5M net worth requirement is high relative to unit investment
- -Higher price point may limit traffic in value-conscious markets
- -10-year franchise terms are shorter than 20-year standard
- -No drive-thru limits convenience factor and site selection
- -Family-owned structure may limit organizational scaling
Who Is the Ideal Five Guys Franchisee?
Five Guys requires multi-unit development commitments (typically 5+ locations). The brand seeks operators with restaurant experience and the capital to develop multiple units. Despite the moderate per-unit investment, the $1.5M net worth requirement and multi-unit commitment mean substantial total capital is needed.
Minimum Requirements Summary
Frequently Asked Questions
How much does it cost to open a Five Guys franchise?
The total investment to open a Five Guys franchise ranges from $300,000 to $673,000, including the $25,000 franchise fee, construction, equipment, inventory, training, and working capital. Exact costs depend on location, format, and local market conditions.
What is the Five Guys royalty fee?
Five Guys charges a 6% royalty on gross sales plus a 2% advertising fee, for a combined ongoing fee of 8% of gross sales.
How much does a Five Guys franchise make per year?
The estimated average unit revenue for a Five Guys location is approximately $1.5M per year. Actual performance varies by location, management, and market conditions. Revenue does not equal profit - operators must account for food costs, labor, rent, royalties, and other operating expenses.
How long is the Five Guys franchise agreement?
The standard Five Guys franchise agreement is 10 years. Renewal terms: Current franchise fee.
How many Five Guys locations are there?
Five Guys operates approximately 1,700 locations worldwide, including 1,400 in the United States. Approximately 95% of locations are franchised.
Compare Five Guys with Other Franchises
See how Five Guys stacks up against similar QSR franchise opportunities.
| Brand | Franchise Fee | Total Investment | Royalty + Ad Fees | Est. Revenue |
|---|---|---|---|---|
| Five Guys | $25,000 | $300,000 - $673,000 | 8% | $1.5M |
| Burger King | $50,000 | $300,000 - $3.3M | 8.5% | $1.5M |
| Wendy's | $50,000 | $1.1M - $3.6M | 8% | $2M |
| Sonic Drive-In | $45,000 | $1.2M - $3.5M | 8.25% | $1.6M |
| McDonald's | $45,000 | $1.3M - $2.3M | 8% | $2.9M |
| Hardee's | $25,000 | $1.4M - $2.6M | 9.5% | $1.2M |
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