Five Guys franchise cost ranges from $978K to $1.38M per unit. Full breakdown of franchise fees, build-out costs, royalties, Item 19 earnings.
Quick answerA Five Guys franchise costs $977,850 to $1,375,750 per restaurant per the 2025 FDD Item 7, including a $25,000 franchise fee; the royalty is 6% of gross sales plus a 2-4% ad fund. Most buyers sign multi-unit development deals of five or more locations, pushing total commitment near $5 million or beyond.
Opening a single Five Guys restaurant requires a total investment between $977,850 and $1,375,750, according to Item 7 of the 2025 Franchise Disclosure Document parsed in VetMyFranchise’s database. The initial franchise fee is $25,000 per unit. But here’s the catch most prospective franchisees miss: Five Guys almost exclusively awards multi-unit area development agreements, meaning you’re committing to open 5 or more locations within a defined territory over a set timeline. For where that puts Five Guys against every other industry’s entry price, see our breakdown of how much it costs to open a franchise.
That changes the real financial picture dramatically. A five-unit development agreement means you’re looking at roughly $4.9 million to $6.9 million in total capital deployment over several years, plus the area development fee paid upfront.
Before diving deeper into the numbers, make sure you understand what a Franchise Disclosure Document contains and how to read one critically. The FTC’s consumer guide to buying a franchise is a good companion read on what the disclosure is legally required to tell you.
The per-unit franchise fee is $25,000. For area development agreements, Five Guys charges an additional development fee based on the number of committed units. If you’re signing a 5-unit agreement, expect to pay $25,000 for the first unit plus reduced fees for subsequent units, typically totaling $100,000-$125,000 upfront.
This fee grants you the right to use the Five Guys brand, operating system, recipes, and supplier network. It does not cover build-out, equipment, or any physical assets. For context on how franchise fees work across the industry, see our franchise fees explained guide.
This is the largest single cost category, ranging from $250,000 to $600,000 depending on your market.
| Cost Component | Low Estimate | High Estimate |
|---|---|---|
| Leasehold improvements | $150,000 | $375,000 |
| Kitchen equipment & smallwares | $65,000 | $130,000 |
| Furniture, fixtures & decor | $20,000 | $50,000 |
| POS system & technology | $15,000 | $45,000 |
Five Guys locations typically occupy 1,500-2,500 square feet in inline retail or endcap positions. The brand’s open kitchen design means a significant portion of the build-out budget goes toward the cooking line, exhaust systems, and grease management infrastructure. Markets like Manhattan, San Francisco, or Chicago suburbs push costs toward the high end. Secondary and tertiary markets can come in closer to the low estimate.
| Cost Component | Low Estimate | High Estimate |
|---|---|---|
| Initial food inventory | $8,000 | $15,000 |
| Exterior and interior signage | $15,000 | $40,000 |
| Pre-opening labor and training | $25,000 | $50,000 |
| Grand opening marketing | $10,000 | $25,000 |
Five Guys uses fresh ingredients (never-frozen beef, hand-cut fries, peanut oil), which means your opening inventory costs are higher than frozen-product burger concepts. Pre-opening training requires you and your management team to spend several weeks at Five Guys’ headquarters and an existing location, with travel and lodging on your dime.
Five Guys recommends $50,000 to $100,000 in working capital to cover the first 3-6 months of operations before the restaurant reaches steady-state revenue. This covers payroll, utilities, rent, and food costs during the ramp-up period. Experienced franchise consultants, including our team, generally recommend budgeting closer to 6 months of operating expenses, which can push this figure higher in expensive markets.
| Factor | Five Guys | Shake Shack | In-N-Out | Smashburger |
|---|---|---|---|---|
| Franchise fee | $25,000 | Not franchised | Not franchised | $30,000 |
| Total investment | $978K-$1.38M | N/A (company-owned) | N/A (company-owned) | $575K-$1.1M |
| Multi-unit required? | Yes (5+ units) | N/A | N/A | Preferred |
| Liquid capital required | $250,000+ | N/A | N/A | $300,000+ |
| Net worth required | $1,000,000+ | N/A | N/A | $1,000,000+ |
| Royalty rate | 6% | N/A | N/A | 5.5% |
A critical distinction: Shake Shack and In-N-Out are entirely company-owned. You cannot franchise either brand. This leaves Five Guys and Smashburger as the primary “better burger” franchise options, with Five Guys commanding stronger brand recognition and higher average unit volumes.
Browse other franchise opportunities in our franchise directory or use the AI franchise matcher to find brands that fit your investment range.
Five Guys charges three recurring fees that come directly off your top-line revenue:
| Fee Type | Rate | Basis |
|---|---|---|
| Royalty fee | 6% | Gross sales |
| Advertising/marketing fund | 2%-4% | Gross sales |
| Technology fee | ~$1,500/month | Flat fee |
The 6% royalty is right at the industry median for QSR burger franchises. The marketing contribution, set at 2% to 4% of gross sales per the 2025 FDD, funds national and regional advertising campaigns. The technology fee covers the POS system, online ordering platform, and back-office reporting tools.
Combined, you’re paying roughly 8% to 10% of gross sales in ongoing fees before you account for rent, labor, food costs, or any local marketing beyond the required fund contributions. For a deeper look at how royalties work, read our guide on franchise royalty fees explained.
Five Guys’ Item 19 financial performance representation shows average unit volumes (AUV) around $1.1 million to $1.3 million for franchised locations as of 2026. Top-quartile locations exceed $1.5 million, while bottom-quartile units fall below $900,000.
These figures represent gross revenue before any deductions. Understanding Item 19 financial performance representations is essential before drawing any income conclusions from these numbers, and the Five Guys FDD profile shows what the brand’s disclosure does and does not report.
Working backward from a $1.2 million AUV location:
| Line Item | Amount | % of Revenue |
|---|---|---|
| Gross revenue | $1,200,000 | 100% |
| Food costs (30-33%) | -$384,000 | 32% |
| Labor costs (25-28%) | -$312,000 | 26% |
| Occupancy/rent (8-12%) | -$120,000 | 10% |
| Royalty (6%) | -$72,000 | 6% |
| Marketing fund (3%) | -$36,000 | 3% |
| Technology fee | -$18,000 | 1.5% |
| Other operating expenses | -$96,000 | 8% |
| Estimated pre-tax cash flow | $162,000 | 13.5% |
This back-of-envelope math suggests a mid-performing Five Guys generates roughly $130,000-$180,000 in pre-tax owner earnings. Top performers do considerably better. Bottom-quartile locations may struggle to clear $60,000, which barely justifies the capital at risk.
Use our franchise investment calculator to model these numbers against your own financial situation.
Considering Five Guys? The full 12-section FDD analysis covers Item 19 earnings, litigation history, fee footnotes, and a buyer verdict personalized to your capital and market: $49 per brand, or three brands for $99 if you’re comparing finalists.
Multi-unit timeline pressure. Your area development agreement includes a strict opening schedule. Miss a deadline, and Five Guys can terminate your rights to remaining units, or even the entire agreement. Delays from permitting, construction, or landlord negotiations don’t necessarily buy you extensions.
Remodel requirements. Five Guys mandates periodic remodels, typically every 7-10 years. These can run $100,000-$250,000 per location and are not optional. The cost is not included in the initial Item 7 investment estimate.
Fresh food waste. The “never frozen” commitment that makes Five Guys popular also creates higher spoilage rates than frozen-product competitors. Daily food cost management requires discipline and experienced kitchen managers.
General manager compensation. In tight labor markets, a qualified GM for a Five Guys location commands $55,000-$75,000 in salary plus benefits. If you’re running multiple units (which you will be), you need a GM at every location, making labor costs your biggest ongoing challenge.
A franchise attorney can help you identify risks buried in the franchise agreement that go beyond what the FDD discloses.
Five Guys is not the cheapest entry point into burger franchising. Brands like Rally’s/Checkers ($300K-$600K) or Sonic ($1.2M but with drive-in format revenues) offer lower per-unit costs. So why pay more?
Brand strength. Five Guys consistently ranks among the top 3 burger brands in consumer preference surveys. That translates to opening-day traffic and sustained customer loyalty that newer or weaker brands can’t match.
Simplicity of operations. The menu is deliberately limited: burgers, fries, hot dogs, milkshakes. No breakfast daypart, no complicated LTOs, no drive-through (in most locations). This operational simplicity reduces training time, lowers error rates, and keeps labor costs more predictable.
Proven AUV. A $1.2 million average unit volume in a 2,000 square foot footprint produces strong revenue per square foot. Many cheaper franchise concepts generate $600,000-$800,000 AUV, meaning the absolute dollar return on Five Guys’ higher investment can still be superior.
The investment makes the most sense for operators who can commit to the multi-unit model, have experience managing restaurant teams, and target markets where Five Guys has limited existing penetration. If you’re evaluating whether franchising or starting your own business is the right path, Five Guys represents the high end of the franchise investment spectrum with correspondingly strong brand support.
The total investment for a single Five Guys location ranges from $977,850 to $1,375,750 according to the 2025 FDD. However, Five Guys almost exclusively awards multi-unit area development agreements requiring 5+ locations, which means the total capital commitment is roughly $4.9 million to $6.9 million over the development timeline.
Five Guys very rarely awards single-unit franchise agreements. The brand strongly prefers multi-unit area development deals, typically requiring franchisees to commit to opening 5 or more locations within a defined territory over a specified timeline. If you only want one restaurant, Five Guys may not be the right fit.
Five Guys charges a 6% royalty on gross sales, plus a 2-4% advertising/marketing fund contribution per the 2025 FDD and a monthly technology fee of approximately $1,500. Combined ongoing fees total roughly 8-10% of gross revenue before any local marketing spend.
Based on Item 19 data and industry cost benchmarks, a mid-performing Five Guys location generating $1.2 million in annual revenue may produce approximately $130,000-$180,000 in pre-tax owner earnings. Top-quartile locations earning $1.5 million+ can produce significantly higher returns, while bottom-quartile units may generate less than $60,000.
As of 2026, Five Guys requires franchisees to have a minimum net worth of $1 million and liquid capital of at least $250,000. For multi-unit area development agreements, the financial requirements scale with the number of committed locations.
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