Five Guys^®

Food & Beverage • Year: 2025

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What Is Five Guys?

Five Guys is a fast casual dining franchise specializing in the sale of hamburgers, french fries, and related accompaniments. Franchisees operate restaurants under Five Guys' System and menu specifications; each restaurant typically ranges between 2,000 and 3,000 square feet and is commonly located in retail shopping centers and other urban locations, with non-traditional captive-market sites (such as train stations, sports arenas, airports, and university campuses) considered on a case-by-case basis.

Five Guys Franchise: Pros and Cons

With a 100 training and support score (well above typical, top quarter), this franchise offers unusually strong onboarding and ongoing field support that lowers the day-to-day operational learning curve, but estimated startup costs beginning at $977,850 (top 10%) create much higher upfront capital and likely heavier financing needs.

Pros

The 100 training and support score is well above typical for ALL (top quarter), giving you strong onboarding and ongoing field support that lowers the day-to-day operational learning curve.

The $25,000 initial franchise fee is well below what's common in Food & Beverage (bottom 10%) and is refundable - lowering your upfront cash commitment and pre-opening financial risk.

Zero outlet terminations, zero non-renewals, and zero reacquired locations are unusually low for Food & Beverage (bottom 5%), suggesting franchisees have generally remained in the system.

Cons

Estimated startup costs begin at $977,850, well above typical for ALL (top 10%), meaning your total upfront capital and likely financing needs will be higher than most peers.

Required equipment and infrastructure are costly - Item 7 asset estimates run $354,000 to $498,500 (well above typical, top 10%), which increases cash on hand needed and may complicate financing approvals.

There are 613 company-owned locations (well above typical for Food & Beverage, top 5%), a large corporate footprint that warrants further due diligence on the franchisor's strategy and long-term commitment to franchise growth.

Lawsuits & Legal Risk

NORMAL

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

43/100

NORMAL

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

100

Excellent

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

61/100

NORMAL

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

$977,850

Franchise Fee

Real Estate

Equipment & Assets

Reserves

Training

Other

Maximum Investment

$1,375,750

Minimum Investment Breakdown

Franchise Fee$25,000

Real Estate$522,500

Equipment & Assets$354,000

Reserves$20,000

Training$100

Other$56,250

Maximum Investment Breakdown

Franchise Fee$25,000

Real Estate$805,000

Equipment & Assets$498,500

Reserves$25,000

Training$5,000

Other$17,250

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.

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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