About Five Guys Burgers and Fries Franchise
Five Guys Burgers and Fries is a leading fast casual restaurant franchise specializing in freshly made burgers and fries prepared according to the brand's exacting recipes and quality standards.
Part of Five Guys Holdings, Inc.
and franchising since 2017, the brand has earned a reputation as one of the top burger restaurants in the country.
Five Guys Burgers and Fries Franchise Cost & Fees
Minimum Investment
$1.0M
Average Investment
$1.3M
Maximum Investment
$1.5M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $25,000 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 4% of Gross Sales (Currently 2%) | National brand fund |
| Total Investment Range | $1,027,850 – $1,500,750 | Includes build-out, inventory, working capital |
The investment range of $1.0M–$1.5M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Sales) and marketing fee (Up to 4% of Gross Sales (Currently 2%)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Franchise Fee (1) | $25,000 | $25,000 |
| Leasehold Improvements (2) | $500,000 | $750,000 |
| Lease Payments and other rental expenses (3) | $7,500 | $25,000 |
| Furniture, Fixtures, Equipment and Decor (4) | $300,000 | $400,000 |
| Signage (5) | $20,000 | $40,000 |
| Initial Inventory (6) | $10,000 | $15,000 |
| Architectural/ Engineering (7) | $15,000 | $30,000 |
| POS Systems (8) | $20,000 | $35,000 |
| Travel, lodging and meals for initial training (9) | $100 | $5,000 |
| Business Supplies (10) | $4,000 | $8,500 |
| Business licenses, permits, utility deposits, etc. (for first year) (11) | $5,000 | $15,000 |
| Delivery and catering expenses (12) | $500 | $1,000 |
| Insurance deposits and premiums (13) | $750 | $1,250 |
| Additional Funds for first 3 months (14) | $20,000 | $25,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 |
| Audit Fee | Cost of audit (Currently estimated at $5,000) |
| Late Payment or Reporting Fee | $50 per day |
| Bread Products | Varies, depending on your bread product needs |
| Local Advertising | Not less than 2% of Gross Sales |
| Cooperative Advertising | Maximum - 1½% of Gross Sales |
| Interest | The lesser of (i) 10% per annum or (ii) the maximum rate allowed by applicable law |
| Advertising & Promotional Materials | Varies, depending on your advertising needs |
| Prohibited Product or Service Fine | $250 per day of use of unauthorized products or services |
| Initial Training of additional or replacement and successor personnel | $1,500 per person |
| Additional Assistance | Current per diem is $500 |
| Cash Register Upgrades | Approximately $5,000 |
| Additional or Remedial Training | Cost in providing the training (Currently $1,500) |
| Inspection and Testing | Cost of inspection or testing (Currently estimated at $5,000) |
| Vendor/Equipment Approval Fee | $5,000 |
| Site Evaluation Fee | A reasonable amount to be determined (Currently $500) |
| Relocation Fee | $7,500 |
| Time Extension Fee | $10,000 per Time Extension |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 160 hours (16 classroom hours, 144 on-the-job hours), generally lasting about 2 weeks, but may require up to 6 weeks. |
| Classroom Training | 16 |
| On-the-Job Training | 144 |
| Training Location | Corporate headquarters or another designated location for classroom training; franchisee's restaurant for on-the-job training. |
| Additional Training | Additional training for personnel beyond the Operating Principal, general manager, and one assistant manager may be charged at $1,500 per person. Mandatory additional training programs and seminars are provided without fee, but travel, lodging, meals, and wages are at the franchisee's expense. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | Varies depending on local market conditions and the number of Restaurants to be developed. For a single restaurant, the Primary Area of Responsibility generally consists of the contiguous property controlled by the landlord where the Restaurant is located (e.g., shopping mall, strip mall, university campus, or hospital), and may be limited to the specific physical space occupied by the Restaurant. |
| Description | Under the Development Agreement, a Territory is assigned for developing a predetermined number of restaurants, but it is not exclusive, and the franchisor and its affiliates may compete within it through other franchisees, company-owned outlets, or other distribution channels. Under the Franchise Agreement, a Primary Area of Responsibility is designated as an exclusive territory for the single restaurant, but if this area is limited to the physical space occupied by the restaurant, it is not exclusive. Competition from other franchisees, company-owned outlets, or other distribution channels is possible. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | additional consecutive 10-year terms |
| Renewal Conditions | To renew, the franchisee must give written notice 7-12 months prior to term end, renovate and modernize the restaurant premises and equipment, not be in material default of any agreements, satisfy all monetary obligations, provide satisfactory evidence of the right to possess the premises, execute a general release of claims, sign the then-current franchise agreement (with substantially similar material terms), and comply with current financial qualifications and training requirements. |
| Transfer Fee | $5,000 |
| Transfer Conditions | Franchisor consent is required for any transfer of interest in the agreement, restaurant, or franchisee. Conditions for approval include: all monetary obligations satisfied, no material default, execution of a general release, transferee meeting franchisor's criteria (educational, managerial, business, character, credit, financial resources), transferee signing a new agreement assuming all obligations, renovation/upgrade of the restaurant, transferor remaining liable for pre-transfer obligations, and transferee completing training programs. |
| Termination for Cause | The franchisor may terminate for cause without opportunity to cure if the franchisee becomes insolvent, files for bankruptcy, has a receiver appointed, has unsatisfied judgments for 60+ days, is dissolved, or has execution levied against property. Termination with notice (and opportunity to cure, usually 30 days) can occur for failure to meet development schedule, failure to execute franchise agreements, conviction of a felony or crime of moral turpitude, public health/safety danger, failure to designate a qualified Operating Principal, material breach of representations/warranties/covenants, unauthorized transfer, misuse of Marks, failure to pay monetary obligations, or repeated defaults. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term of the agreement, the franchisee and controlling principals are prohibited from owning, operating, or having a financial interest in any 'Competing Restaurant' (specializing in hamburgers, hot dogs, or french fries) in the United States or any country where the Marks are registered/sought. After termination or expiration, for two years, they are prohibited from operating a similar business within the territory or a five-mile radius of any existing or under-construction FIVE GUYS® Restaurant. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee must designate and retain an 'Operating Principal' who will devote substantial full-time and best efforts to the supervision and performance of the business. If the franchisee is an entity, the Operating Principal must be one of the 'Controlling Principals' and maintain an equity interest. The Operating Principal must sign the agreements and personally guarantee performance. A 'General Manager' is also required to direct daily operations and management, but does not need an equity interest. |
| Required Suppliers | Five Guys Bakery (hamburger and hotdog buns and rolls), PAR Technology Corporation (Point-of-Sale system). |
| Supply Restrictions | Franchisees must purchase or lease all fixtures, furnishings, and equipment conforming to franchisor's standards. All food and beverage items, ingredients, products, materials, supplies, and paper goods must meet franchisor's standards and specifications and be purchased from approved suppliers. Proprietary products and promotional materials must be purchased from franchisor or designated suppliers. All menu items must be prepared using franchisor's recipes and procedures. Franchisor must approve any unapproved supplier in writing. |
| Franchisor Revenue from Suppliers | $47,954,503 in revenue was derived by Five Guys Bakery from the sale of hamburger and hotdog buns to U.S. and Canadian franchisees in 2024, amounting to 73% of Five Guys Bakery’s total revenue for 2024. No other revenue was derived by the franchisor or its affiliates from required purchases or leases. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | The franchisor does not offer, either directly or indirectly, any financing arrangements to franchisees, nor does it guarantee franchisee notes, leases, or other obligations. |
Five Guys Burgers and Fries Franchise Earnings — Item 19
Five Guys Burgers and Fries does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Five Guys Burgers and Fries does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Five Guys Burgers and Fries Litigation & Risk Flags
1 Pending Action ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Five Guys Burgers and Fries System Growth
Total Units
1558
Franchised
945
Company-Owned
613
Five Guys Burgers and Fries currently operates 945 franchised locations and 613 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 147 | 135 | 1477 |
| 2023 | 85 | 19 | 1521 |
| 2024 | 81 | 28 | 1558 |
Transfers: 137 | Closures: 182
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$1083.2M
Net Income
$-103,329,000
Total Assets
$822.4M
Audited by Deloitte & Touche LLP for year ending December 31st.
Five Guys Burgers and Fries Franchise — FAQ
The total investment to open a Five Guys Burgers and Fries franchise ranges from $1,027,850 to $1,500,750, per their Franchise Disclosure Document. This includes the initial franchise fee of $25,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Five Guys Burgers and Fries charges a royalty fee of 6% of Gross Sales of gross sales, plus a Up to 4% of Gross Sales (Currently 2%) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Five Guys Burgers and Fries Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Five Guys Burgers and Fries to ensure you have the most up-to-date version.
Five Guys Burgers and Fries does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Five Guys Burgers and Fries has been franchising since 2017. The FDD shows an investment range of $1,027,850-$1,500,750, a 6% of Gross Sales royalty, and no Item 19 earnings disclosure. There are 1 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $25,000 and the total investment ranges from $1,027,850 to $1,500,750 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Five Guys Burgers and Fries and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Five Guys Burgers and Fries or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com