Five Guys® Franchise Cost, Revenue & Review 2026
- Investment
- $928K – $1.4M
- Disclosed sales
- not disclosed
- SBA charge-off
- Limited · 35 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Five Guys is a fast-casual burger franchise built on made-to-order burgers, free toppings, and hand-cut fries. Franchisees run restaurants with a deliberately limited menu, emphasizing fresh ingredients and peak-hour throughput.
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]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $928K – $1.4M
- 91st pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 48th pct Service Resta…
- Units
- 1,558
- 94th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $928K – $1.4M including a $25K franchise fee, 6.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict A (Strongest tier), verdict score 70/100 (higher is better).
- GROWTHPositive: net +21 franchised outlets in the latest year (35 opened, 14 closed); 361 signed but not yet open (Item 20).
- DATAThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Five Guys Franchisor, LLC
- Parent company
- Five Guys Funding, LLC
- Ultimate parent
- Five Guys Holdings, Inc.
- Predecessor
- Five Guys Enterprises, LLC (FGE)
- Prior franchisor entity
- 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
- Delaware
- HQ
- 1940 Duke Street, 5th Floor, Alexandria, Virginia 22314
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $1.1B
- 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
- CEO
- Victor J. Murrell
- Headquarters
- VA
- Founded
- 2017
- FDD year
- 2025
- States available
- 43
Can you afford it, and what does the money buy?
Entry cost runs 137% above the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown14 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
- Bottom third — review vs category
- Liquid capital req'd
- $20K – $25K
- Top 40% of category vs category
- Franchise fee
- $25K – $25K
- Top 40% of category vs category
- Royalty
- 6.0%
- 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 |
| Transfer fee | $5K |
| Inventory (initial) | $10K – $15K |
| Total fee load | 8.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FIVE GUYS® makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one FIVE GUYS® unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 8.0% (near the Quick-Service Restaurants median).
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System expanding at 5.1% CAGR over 3 years across 1,558 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants medians
How Five Guys® Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,558
- Opened
- 35
- Last reporting year
- Closed
- 14
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.9%
- Company-owned
- 613
- Corporate units in the system
- % franchised
- 61%
- vs corporate-owned
- Net growth (3-yr)
- +5.1%
- Net unit change over 3 years
- 3-yr CAGR
- +5.1%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 50
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 361
- 0.23 per open outlet · Item 20 Table 5
- Projected new
- 48
- Franchisor's next-year forecast
- 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).
Where the owners are · Item 20 owner list
98 current owners across 10 states.
- CA 43
- CO 14
- AL 12
- AZ 7
- DE 6
- VA 6
- AR 5
- FL 2
- NY 2
- IN 1
Counts only, from the list the franchisor prints in Item 20; 2 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
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
- Limited · 35 loans
- Limited SBA coverage: 35 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 35 loans
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 23
- Defaults
- 0
- Typical loan rate
- 6.0%
- avg rate to borrowers
- Franchised industry avg
- 10.8%
- n=12,827 loans
- Jobs supported
- 1,765
- 4.1 per loan
- Lender concentration
- 14%
- top lender's share
Borrower mix: 23% went to startups / new businesses, 77% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 10.8% vs 10.0% for independents — franchising is associated with 8% higher SBA default risk in this category.
Vintage analysis
Five Guys® charge-off rate by loan vintage
Top lenders financing Five Guys® franchisees
Showing 3 of 23 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Five Guys® from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 72%
- Avg interest rate
- 5.95%
- Lender concentration
- 14.3%
- Job velocity
- 4.1 per $100K
- NAICS benchmark
- 8.7%
- NAICS 722513
- Jobs supported
- 1,765
Top SBA lendersTop lender holds 14% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | KeyBank National Association | 5 | $5.6M | 0.0% |
| 2 | JPMorgan Chase Bank, National Association | 4 | $3.4M | 0.0% |
| 3 | Capital One, National Association | 3 | $153K | 0.0% |
| 4 | Truist Bank | 2 | $5.9M | 0.0% |
| 5 | iTHINK Financial CU | 2 | $461K | 0.0% |
| 6 | Ameris Bank | 2 | $677K | 0.0% |
| 7 | Atlantic Union Bank | 1 | $508K | 0.0% |
| 8 | WesBanco Bank, Inc. | 1 | $529K | 0.0% |
| 9 | Pinnacle Bank | 1 | $4.4M | 0.0% |
| 10 | Bangor Savings Bank | 1 | $405K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| VAVirginia | 4 | 0 | 0.0% |
| WAWashington | 4 | 0 | 0.0% |
| NJNew Jersey | 3 | 0 | 0.0% |
| NYNew York | 3 | 0 | 0.0% |
| CACalifornia | 2 | 0 | 0.0% |
| FLFlorida | 2 | 0 | 0.0% |
| GAGeorgia | 2 | 0 | 0.0% |
| MDMaryland | 2 | 0 | 0.0% |
| NCNorth Carolina | 2 | 0 | 0.0% |
| OROregon | 2 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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.
Why this reads harsher than the A grade: the grade weighs financial health, unit economics, unit growth, scale, legal, and transparency across the whole filing, while this summary lists individual flags without that weighting. The flags are worth checking with current owners; neither is investment advice.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
1) Maryland AG Consent Order (2005) against predecessor FGE for selling franchise before registration renewal effective; 2) Emmett O'Brien v. Paul Flick and Samuel Chamberlain (2024) - defamation/tortious interference suit against COO related to prior board service at NO-H2O franchise concept
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Consolidated total revenue of Five Guys Holdings, Inc. and Subsidiaries (ultimate parent) for FY ended Dec 31, 2024, in thousands. Includes restaurant sales ($859,678K), bakery sales ($65,956K), royalty fees ($110,029K), development fees ($3,104K), franchise fees ($1,268K), other revenue ($4,702K), and creative fund revenue ($38,413K). Company had a net loss and a stockholders' deficit (going concern context noted).
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
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 70 / 100 verdict
- 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
Litigation case detail2 matters · Item 3
Litigation cases
Parent, affiliates and predecessor
Concluded (1)
Matter with no printed caption
concludedGovernment or regulatory action · Five Guys Enterprises, LLC (FGE), the franchisor before June 2017 · Maryland Attorney General / Maryland Division of Securities (administrative)
“On January 14, 2005, in accordance with Sections 14-214 and 14-216 of the Maryland Franchise Law, the Maryland Attorney General required FGE to sign a Consent Order (“Order”) for violations of those sections in that FGE sold a franchise before its franchise renewal registration became effective and offered to sell 2 others during this period of time.”Page 14 of the 2025 FDD, Item 3
Officers and directors (individuals, not the company)
Pending (1)
Emmett O’Brien v. Paul Flick and Samuel Chamberlain
pendingThird-party plaintiff · Samuel Chamberlain (FGE's Chief Operating Officer, listed in Item 2) · U.S. District Court for the Southern District of Florida · 24-cv-61529-MD
“Emmett O’Brien v. Paul Flick and Samuel Chamberlain (Case No.: 24-cv-61529-MD; U.S. District Court for the Southern District of Florida). On September 16, 2024, the plaintiff filed an amended complaint against the defendants, including Samuel Chamberlain (FGE’s current Chief Operating Officer).”Page 14 of the 2025 FDD, Item 3
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Protected territory |
| 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 | 5 days |
| Termination groundsℹ | 6 |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Arbitration location | Alexandria, Virginia |
| Jury trial waiver | Yes |
| Governing law | VA |
| Litigation count | 2 |
View Item 3 litigation summary
1) Maryland AG Consent Order (2005) against predecessor FGE for selling franchise before registration renewal effective; 2) Emmett O'Brien v. Paul Flick and Samuel Chamberlain (2024) - defamation/tortious interference suit against COO related to prior board service at NO-H2O franchise concept
Items 10, 11
Training & Operations
- Classroom training
- 16 hrs
- On-the-job training
- 160 hrs
- Training location
- Alexandria, Virginia (corporate HQ) and franchisee's restaurant
- Ongoing training
- Required
- Site selection
- Franchisee selects subject to franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Franchisor-specified POS system (front counter and kiosks)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Franchisor-specified POS system (front counter and kiosks)
Item 20 · call current owners
Franchisee Contacts
100 owners to call
Name · phone · city · state. Extracted from FDD Item 20
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® makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns FIVE GUYS®?
FIVE GUYS® is franchised by Five Guys Franchisor, LLC. Its parent company is Five Guys Funding, LLC. The ultimate parent named in the FDD is Five Guys Holdings, Inc.. Source: FDD Item 1, 2025 filing.
What is Item 19 in the FIVE GUYS® FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the FIVE GUYS® FDD and qualifies whose outlets they describe.
What is FIVE GUYS®'s franchise failure rate?
SBA 7(a) loan charge-off data is not available for FIVE GUYS® (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
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 verdict score of 70 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.