Five Guys®Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A FIVE GUYS® franchise requires a total initial investment of $928K – $1.4M, including a $25K franchise fee and an ongoing 6.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 0.0% charge-off rate across 35 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $928K – $1.4M
- 95th pct Service Resta…
- Avg gross sales
- N/A
- 59th pct Service Resta…
- Royalty
- 6.0%
- 44th pct Service Resta…
- Units
- 1,558
- 95th pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Only 0.0% of 35 SBA loans charged off, well below the 16% franchise average.
Franchised units fell from 945 to 899 over 3 years. Investigate why operators are leaving.
Large franchise systems benefit from brand recognition, supply chain leverage, and proven operations.
Bottom line
- Total investment $928K – $1.4M including a $25K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict A (Top Quintile) with a risk score of 22/100. SBA loan charge-off rate of 0.0% across 35 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Five Guys Franchisor, LLC
- Parent company
- Five Guys Holdings, Inc.
- CEO title
- President and Chief Executive Officer
- Victor J. Murrell
- CEO experience
- 27 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- DE
- HQ
- 1940 Duke Street, 5th Floor, Alexandria, Virginia 22314
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $1.0B
- vs $1.1B prior year
Affiliated brands
- of FGE
- was formed in Canada as a Nova Scotia unlimited liability
- Five Guys Operations
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Franchisees operate fast-casual burger and fries restaurants featuring customizable toppings and fresh ingredients. Day-to-day operations include managing 20-40 staff, sourcing fresh produce/beef, executing 100%+ margin food prep, handling peak-hour service (lunch/dinner), and maintaining brand consistency across a limited menu model.
- CEO
- Victor J. Murrell
- Headquarters
- VA
- Founded
- 2017
- FDD year
- 2025
- States available
- 43
FDD Item 7 · 2025 filing · 14 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Franchise Fee | $25K | $25K | |
| Leasehold Improvements | $500K | $750K | |
| Lease Payments and other rental expenses | $8K | $25K | |
| Furniture, Fixtures, Equipment and Decor | $300K | $400K | |
| Signage | $20K | $40K | |
| Initial Inventory | $10K | $15K | |
| Architectural/Engineering | $15K | $30K | |
| POS Systems | $20K | $35K | |
| Travel, lodging and meals for initial training | $100 | $5K | |
| Business Supplies | $4K | $9K | |
| Business licenses, permits, utility deposits, etc. (for first year) | $5K | $15K | |
| Delivery and catering expenses | $500 | $1K | |
| Insurance deposits and premiums | $750 | $1K | |
| Additional Funds for first 3 months | $20K | $25K | |
| Total initial investment | $928K | $1.4M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $928K – $1.4M
- Below avg, review vs category
- Liquid capital req'd
- $20K – $25K
- Near category avg vs category
- Franchise fee
- $15K – $25K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Training fee | $2K |
| Transfer fee | $5K |
| Total fee load | 8.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Quick-Service Restaurants averages
How Five Guys® Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,558
- Opened
- 35
- Last reporting year
- Closed
- 14
- Turnover rate
- 0.9%
- Company-owned
- 613
- Corporate units in the system
- % franchised
- 61%
- vs corporate-owned
- Net growth (yr3)
- +2.3%
- Net unit change last year
- 3-yr CAGR
- +5.1%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 21
- Closed (3yr)
- 11
- Transfers (3yr)
- 50
- Reacquired (3yr)
- 106
- Franchisor bought back
- Transfer rate
- 3.2%
- Owners selling to other franchisees
- Ceased ops
- 0.7%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 10 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- California
- Hawaii
- Illinois
- Indiana
- Maryland
- South Dakota
- Virginia
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 35
- Loan volume
- $43.3M
- Median loan
- $523K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 23
- Defaults
- 0
Vintage analysis
Five Guys® charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Five Guys®'s SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 11-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
With a 0.0% charge-off rate across 35 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Five Guys presents elevated risk due to non-disclosure of unit economics, anemic growth, high capital requirements, and active executive litigation without transparent performance metrics to justify the investment.
Litigation (Item 3)
Maryland Attorney General Consent Order (2005) for violations of franchise law sections 14-214 and 14-216; Emmett O'Brien v. Paul Flick and Samuel Chamberlain (2024, pending) alleging defamation, intentional infliction of emotional distress, and tortious interference against FGE's COO.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 22 / 100 rating
- 01MEDNo Item 19 (Average Unit Volume) disclosed — impossible to assess ROI against $927K-$1.38M investment
- 02MINORMinimal system growth (2.3% YoY on 1,558 units) suggests market saturation or declining franchisee interest
- 03MINORHigh initial investment ($927K-$1.38M) with 6% royalty burden and no transparent revenue benchmarks creates profitability opacity
- 04HIGH2024 active litigation involving COO (defamation/business interference) raises governance and leadership stability concerns
- 05MINOR2005 Maryland Consent Order indicates historical regulatory violations in pre-registration sales practices
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Contiguous property |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 6 |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Arbitration location | Alexandria, Virginia |
| Jury trial waiver | Yes |
| Governing law | Virginia |
| Litigation count | 2 |
View Item 3 litigation summary
Maryland Attorney General Consent Order (2005) for violations of franchise law sections 14-214 and 14-216; Emmett O'Brien v. Paul Flick and Samuel Chamberlain (2024, pending) alleging defamation, intentional infliction of emotional distress, and tortious interference against FGE's COO.
Items 10, 11
Training & Operations
- Classroom training
- 16 hrs
- On-the-job training
- 160 hrs
- Training location
- On-site and corporate
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
100 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
FIVE GUYS® · FDD (2025) PDF
Frequently asked questions
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 $928K – $1.4M, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do FIVE GUYS® franchise owners earn?
FIVE GUYS® does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is FIVE GUYS®'s franchise failure rate?
Based on SBA 7(a) loan data, FIVE GUYS® has a charge-off rate of 0.0% across 35 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many FIVE GUYS® franchise locations are there?
As of their most recent FDD filing, FIVE GUYS® has 1,558 total units in the United States, including 945 franchised units and 613 company-owned units. 35 new units were opened in the latest reporting year.
Is FIVE GUYS® a good franchise to buy?
FranchiseVerdict rates FIVE GUYS® as a A-grade franchise with a risk score of 22 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.