Five Guys®
What Is Five Guys?
Five Guys is a fast-casual restaurant franchise specializing in hamburgers, french fries, and related accompaniments. Revenue is generated primarily from the sale of those menu items; franchisees are required to purchase certain bread products from Five Guys Bakery and the system includes a customer gift certificate and stored value card program. Restaurants are typically 2,000–3,000 square feet and located in retail shopping centers and other urban locations, with select non-traditional sites (for example, train stations, sports arenas, airports, and university campuses) considered on a case-by-case basis.
Five Guys Franchise: Pros and Cons
The franchisor's exceptional 100 training and support score (well above typical) signals unusually strong initial training and ongoing help, but the estimated minimum startup cost of $977,850 (Item 7 assets $354,000–$498,500) is far above typical and will raise your upfront capital and financing needs.
Pros
Cons
Lawsuits & Legal Risk
Five Guys: Facts: A 2024 suit names Five Guys’ COO for alleged defamation, intentional infliction of emotional distress, and tortious interference arising from his prior board role at another franchisor; no further proceedings to date. Advice: Prospective franchisees should review management disclosures, D&O and liability insurance, indemnification clauses, and conflict-of-interest policies (Items 1, 2, and 17).
Territory Protection
Five Guys grants protected territory rights: Franchise Agreements create an exclusive Primary Area of Responsibility (often only the Restaurant's leased space), while Development Agreements allocate larger, non‑exclusive areas. Rights are contingent on meeting development/performance schedules; the franchisor may sell online and develop nearby units without offering rights of first refusal.
Training & Support
The brand provides a comprehensive 168-hour training curriculum designed to prepare three managerial staff members for launch, combining classroom instruction with practical operational learning. The program includes on-site launch support for operational readiness, with travel and lodging expenses borne by the franchisee and on-site assistance available at additional cost beyond the initial fee.
Franchisee Stability
Five Guys receives a Normal Stability Score. Three-year turnover of 5.35% sits below the typical Food & Beverage franchise (around 5.4%), so on net the system loses franchisees at a rate that aligns with peers rather than standing out as high churn, and this places retention near the center of the industry experience. Out of 139 total exits across the three reported years, reacquisitions dominated with 106, alongside 33 ceased operations, no terminations, and no non-renewals.
The predominance of franchisor buybacks suggests the franchisor is reclaiming units, which can mean it absorbs underperforming locations instead of pursuing removals through enforcement; prospective buyers should therefore ask how buyback decisions are made, how reclaimed sites are handled operationally, and what recovery plans are used for underperforming operators. Retention is in line with industry peers.
Unit Growth Analysis
This franchise shows modest, positive expansion-units increased from 1,458 in 2022 to 1,558 in 2025 (+100 units, +6.9% cumulative), with YoY growth of +1.3% (2023), +3.0% (2024) and +2.4% (2025). For investors this signals a healthy, low‑risk growth trajectory (steady single‑digit/unit additions and operational stability) though the drop from 3.0% to 2.4% in the latest year indicates a slight deceleration worth monitoring.
How Much Does It Cost to Open a Five Guys Franchise?
Opening a Five Guys franchise requires a total initial investment of $977,850 to $1,375,750, according to the 2025 Franchise Disclosure Document. This range covers the franchise fee, real estate, equipment, training, and initial working capital needed to launch and operate through the early months.
Minimum Investment
Maximum Investment
Minimum Investment Breakdown
Maximum Investment Breakdown
Investment Analysis
This investment analysis is coming soon. Have ideas for other analyses you'd like us to add? Get in touch.
The initial investment amounts shown are estimates only. Actual costs may vary based on location size, business model, and multi-unit ownership arrangements. We recommend reviewing the full Franchise Disclosure Document for complete details.
Five Guys Franchise Earnings: Not Disclosed
Five Guys did not disclose financial performance data (Item 19) in their 2025 Franchise Disclosure Document. Not all franchisors choose to publish this information, which can make it harder for prospective owners to evaluate expected revenue before investing.
This franchise company did not publish these results.
Frequently Asked Questions
Is Five Guys a good franchise to own?
Whether Five Guys is a good franchise depends on your goals, experience, and local market. Key factors from the 2025 FDD: Five Guys operates 1558 locations, received a legal risk score of 97/100, a training and support score of 100/100. The franchisor does not disclose financial performance data. Prospective franchisees should review the full Franchise Disclosure Document and consult with a franchise attorney before making any investment decision.
Is a Five Guys franchise worth the investment?
The value of a Five Guys franchise investment depends on factors such as location, operator experience, and market demand. The initial investment ranges from $977,850 to $1,375,750. Franchise investments carry inherent risk, and prospective buyers should conduct thorough due diligence before committing capital.
How long does it take to break even with a Five Guys franchise?
Break-even timelines for Five Guys franchises are not disclosed in the 2025 Franchise Disclosure Document. Break-even periods vary significantly based on initial investment level, local market conditions, operating costs, and revenue ramp-up speed. Prospective franchisees should build a pro forma financial model using Item 7 cost estimates and, where available, Item 19 financial performance data from the FDD.
Is Five Guys a franchise or a corporate-owned business?
As of the 2025 FDD, Five Guys operates 945 franchised locations and 613 company-owned locations. Franchise opportunities are available through the franchisor's disclosure process.
Does Five Guys disclose franchise revenue data?
Five Guys did not disclose financial performance data (Item 19) in their 2025 FDD. Not all franchisors choose to publish this information.
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