Five Guys Franchise – Costs, Fees & Earning Stats
Net Worth Requirement:
Units in Operation:
$306,200 - $641,250
Five Guys is a fast-food chain that specializes in hamburgers and fries. The company was founded in 1986 by Jerry Murrell in Arlington, Virginia.
The company has grown rapidly in recent years. Five Guys has been consistently ranked as one of the best fast-food chains in the country and has a very strong franchise model, and is looking to continue its expansion in the years to come.
Is Five Guys a corporate chain or a franchise?
Unlike some other fast-food chains, Five Guys’ restaurants are owned and operated by franchisees. This business model allows the company to expand quickly into new markets without incurring the high costs associated with building and owning restaurant infrastructure.
A Five Guys franchise owner also has a vested interest in ensuring that each Five Guys location is well-run and provides a positive customer experience. As a result, Five Guys has been able to build a loyal following among customers who appreciate its fresh, made-to-order burgers and fries.
Franchising has been one of the keys to their success.
How Many Five Guys burger franchises are there?
The first Five Guys restaurant opened in 1986 in Arlington, Virginia, and the franchise has been expanding rapidly ever since.
At the start of 2022, there were Five Guys restaurants in all 50 US states and a total of 1,458 Five Guys locations around the world, including in several other countries, including Canada, the United Kingdom, Europe, Asia and the Middle East.
The company shows no signs of slowing down anytime soon, and there are 1500 more units in development. So if you’re craving fresh ground beef on a delicious burger and some fresh-cut fries, there’s a good chance that there’s a Five Guys restaurant near you.
How much does a Five Guys franchise cost?
The cost of opening a Five Guys franchise can vary depending on a number of factors, including the location of the restaurant and the size of the building.
The company doesn’t post its financials on its website. However, the cost of opening a Five Guys franchise is said to be between $306,000 and $641,000.
This figure includes the cost of leasing or purchasing a suitable property, as well as equipment and signage. In addition, there are ongoing royalties of 6% of monthly gross sales (8% in Alaska and Hawaii).
They also have a 2% brand fund fee on gross sales as well to help with promotional and marketing efforts. As such, opening a Five Guys franchise is a significant investment.
What is the Five Guys franchise fee?
The Five Guys franchise fee is $25,000. While the upfront costs of opening a Five Guys franchise are relatively high, the company has a proven track record of success.
Franchisees who follow the company’s guidelines and provide outstanding customer service tend to reap significant rewards. With its simple menu and a strong focus on quality, Five Guys has become a beloved brand among burger lovers across the country.
They also have a cult-like following with the Five Guys brand featured in the news. As a result, the franchise is likely to continue to be a sound investment for those looking to enter the fast-food industry.
How much do Five Guys franchise owners make?
Since the Five Guys don’t post their financials, it’s hard to get a sense of what they are other than they have been rapidly expanding their fast-food model. Five Guys franchises are located within most major cities with many locations serving smaller cities as well.
Of course, actual profits will vary depending on factors such as the location of the franchise, the size of the operation, and the level of competition. However, with a proven business model and a well-known brand, a Five Guys burgers and fries franchise owner can be confident that they will be able to make a healthy return on their investment.
It can be an endeavor for those who are able to effectively manage their business.
As always, due your due diligence and get a copy of the financial disclosure document to see the current figures.
The Wolf’s Take 🍟
Five Guys is an established quick-service restaurant (QSR) brand with over 1,000+ locations.
Given their brand recognition and a large number of franchises already open and operating, it’s not uncommon for a franchise of this size to not include financials, as they can simply have new candidates speak to any of their franchisees to get a sense of the financials.
So while I have nothing official to report, I can say that anecdotally I’ve heard from existing owners that the average revenue per location is over $1 million, and close to $1.15 million.
As an FYI, I did speak to the owner of 13 Five Guys locations on my podcast. The guest’s name was Lucas Mitchell – he was a former manager at Five Guys before transitioning into a franchise owner.
We chatted a bit about numbers at a certain point in the conversation, so if you want to hear from this owner, check out the conversation here.
Again though, there are no official financials to be quoted. If you truly want to know the financials you’d have to go through their due diligence process and speak to existing franchise owners.
The Five Guys franchise is a well-known and beloved brand among burger lovers across the country. They have a cult-like following and the franchise has been written about and featured in many publications.
As such, the franchise is likely to be a good place to start for anyone looking to get into the fast-food industry.
So there you have it – an overview of the Five Guys restaurant franchise including costs, fees, and earnings potential. If you think this could be the right fit for you, be sure to do your due diligence and research the opportunity thoroughly before making any commitments.