Yes, Five Guys is a franchise. Learn how the Five Guys franchise model works, why multi-unit commitments are required, current franchisee requirements.
Quick answerYes. Five Guys franchises through multi-unit area development deals: $977,850 to $1,375,750 per restaurant, a $25,000 franchise fee, 6% royalty, and a 2-4% ad fund per the 2025 FDD. The system runs 1,558 franchised locations against 613 company-owned, and single-unit grants are rare.
Yes, Five Guys Enterprises LLC operates as a franchise system. The 2025 FDD parsed in VetMyFranchise’s database counts 2,171 locations: 1,558 franchised and 613 company-operated. However, Five Guys’ approach to franchising is considerably more restrictive than brands like McDonald’s, Subway, or Burger King. The Murrell family, founders Jerry Murrell and his sons, maintain significant control over the brand and are selective about who they award franchise rights to.
If you’re new to franchising, our guide on what a Franchise Disclosure Document is provides essential context for evaluating any franchise opportunity.
Five Guys overwhelmingly favors area development agreements (ADAs) over single-unit franchise awards. An ADA commits the franchisee to developing multiple locations (typically 5 or more units) within a defined geographic territory over a set timeline, usually 5-8 years. Ongoing fees run a 6% royalty and a 2.0-4.0% ad fund per the 2025 FDD, on a 10-year franchise agreement term per unit.
The ADA structure means Five Guys franchisees are not individual owner-operators running one restaurant. They’re multi-unit developers building and managing a portfolio of locations. This requires not just capital, but organizational infrastructure: district managers, training systems, HR processes, and supply chain coordination across multiple sites.
For context on how multi-unit ownership works, our multi-unit franchise ownership guide covers the operational and financial differences between single-unit and multi-unit strategies.
Five Guys’ preference for multi-unit developers stems from several strategic considerations:
Operational consistency. When one franchisee operates 5-15 locations in a market, quality control is more predictable than when 15 different owners each run a single unit. The franchisee develops market-specific expertise and can cross-train staff between locations.
Faster market penetration. A committed multi-unit developer opens locations on a defined schedule, allowing Five Guys to build market density quickly. Single-unit owners develop markets one store at a time.
Franchise support efficiency. Five Guys’ corporate team can manage relationships with 200 multi-unit groups more effectively than 1,500 individual operators. Field support, communication, and brand compliance all become more manageable.
Financial stability. Multi-unit developers have deeper capital reserves and more sophisticated business operations, reducing the risk of franchise failures that damage the brand.
The downside for prospective franchisees is clear: if you want to own one Five Guys, the brand probably isn’t interested. You need the financial capacity and business experience to commit to a multi-unit development plan.
| Metric | 2025 FDD Figure |
|---|---|
| Franchised locations | 1,558 (~72%) |
| Company-operated locations | 613 (~28%) |
| Total locations | 2,171 |
| Franchised openings (latest year) | 35 |
| Franchised closures (latest year) | 14 |
Five Guys maintains a higher percentage of company-operated locations than most mature franchise systems. McDonald’s is 95% franchised; Burger King is roughly 99% franchised. Five Guys’ roughly 28% company-owned ratio reflects the Murrell family’s desire to maintain direct operational presence and keep corporate locations as benchmarks for franchise performance.
The company-owned locations are concentrated in the Virginia/D.C. metro area, the brand’s original market, and serve as testing grounds for menu changes, technology rollouts, and operational improvements before they’re pushed to the franchise system.
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Five Guys’ origin story is one of the more unusual narratives in franchising. Jerry Murrell and his wife Janie opened the first Five Guys in Arlington, Virginia, in 1986. The “five guys” were their four sons (a fifth came later). The family operated a handful of locations in the D.C. metro area for nearly two decades before opening franchising in 2003.
What happened next was explosive. Five Guys went from a regional cult favorite to a national brand in under a decade, growing from 5 locations to over 1,000 by 2013. The growth was fueled almost entirely by franchise development, but the Murrell family retained control through several mechanisms:
Private ownership. Five Guys Enterprises has never gone public. There’s no board of directors answering to public shareholders. Jerry Murrell and his sons make strategic decisions without external pressure for quarterly earnings growth.
Family members in key roles. Multiple Murrell sons hold operational leadership positions within the company, maintaining direct oversight of franchise relations, menu development, and quality standards.
Restrictive franchise agreements. Five Guys’ franchise agreements give the franchisor significant control over sourcing, menu, pricing, and operational standards. Franchisees have less autonomy than in many other QSR systems.
Selective growth. Unlike brands that maximize unit count for franchise fee revenue, Five Guys has been willing to slow growth to maintain quality. The brand reportedly turned down numerous franchise applications during its peak growth years.
| Factor | Five Guys | Shake Shack | In-N-Out | Smashburger |
|---|---|---|---|---|
| Franchise model | ADA (multi-unit) | Not franchised | Not franchised | Single + multi-unit |
| Can you franchise it? | Yes | No | No | Yes |
| Total investment per unit | $978K-$1.38M | N/A | N/A | $575K-$1.1M |
| Minimum units required | 5+ (typical) | N/A | N/A | 1 (multi preferred) |
| Family/founder controlled? | Yes (Murrell family) | No (public company) | Yes (Snyder family) | No (private equity) |
| Menu customization allowed? | None | N/A | None | Limited |
| Drive-through offered? | Rarely | Some | Yes (all) | Some |
Five Guys figures are per the 2025 FDD; other brands are as of 2026.
The “better burger” segment is dominated by company-owned brands. If you want to own a premium burger restaurant through franchising, Five Guys and Smashburger are essentially your options. Five Guys has stronger brand equity and higher AUVs but demands a much larger commitment. Smashburger is more accessible for first-time franchise investors.
Compare these and other brands in our franchise directory.
Five Guys continues to award franchise agreements, but growth has slowed considerably from the explosive 2008-2015 era; the 2025 FDD shows 35 franchised openings against 14 closures in the latest year. The brand is more focused on international expansion (U.K., Europe, Middle East, Asia-Pacific) than adding domestic U.S. units.
In the U.S., new franchise awards tend to focus on:
Major U.S. metros (New York, Los Angeles, Chicago, Dallas, Atlanta) are largely built out. If you’re targeting one of these markets, the opportunities may be limited to acquiring existing franchised locations from operators looking to exit rather than developing new territories.
The best way to gauge current availability is to contact Five Guys’ franchise development team directly or work with a franchise broker who has relationships with the brand. Our guide to the franchise buying process outlines how to approach brands and evaluate opportunities.
Financial requirements (as of 2026):
Experience requirements:
Operational requirements:
Five Guys does not publish a formal application on its website. Prospective franchisees typically initiate contact through franchise brokers, industry events, or direct outreach to the franchise development team.
Once you meet the financial and experience bar above, the path from first contact to opening day follows a predictable sequence. Plan for 12 to 18 months from application to grand opening, and note that permitting or site-selection delays commonly stretch this to 20 to 24 months.
Pros:
Cons:
Weigh these factors against your personal goals and financial situation. Our franchise vs. starting your own business analysis can help you decide whether franchising is the right path at all, and Discovery Day is where you’ll get the most candid read on a brand’s culture and expectations.
Five Guys is both. Five Guys Enterprises LLC is a privately held company owned by the Murrell family that operates as a franchisor. Per the 2025 FDD, 1,558 locations are franchised (about 72%) while 613 are company-operated (about 28%), the company stores concentrated primarily in the Virginia/D.C. metro area.
Five Guys very rarely awards single-unit franchise agreements. The brand strongly prefers area development agreements requiring franchisees to commit to opening 5 or more locations within a defined territory. You need the financial capacity and business experience to manage multiple locations.
The total investment for a single Five Guys location ranges from $977,850 to $1,375,750 per the 2025 FDD. The franchise fee is $25,000 per unit. Because Five Guys requires multi-unit commitments, the real capital requirement across a 5-unit development agreement can reach $4.9 million or more.
Yes, Five Guys continues to award franchise agreements, though growth has slowed from its peak expansion years (2008-2015). Current focus is primarily on international expansion and underserved U.S. secondary markets. Major U.S. metros are largely built out, and new domestic opportunities may be limited to acquiring existing franchised locations.
Most Five Guys locations were designed as inline retail or endcap restaurants without drive-through infrastructure. The brand's open kitchen concept and made-to-order model don't align well with the speed requirements of drive-through service. Some newer locations have experimented with pickup windows, but traditional drive-throughs remain rare in the system.
The process from initial application to grand opening typically takes 12 to 18 months, though 20 to 24 months is common once permitting delays and site selection challenges are factored in. The build-out phase alone runs 5 to 8 months after you sign a lease.
No. Five Guys requires franchisees to be actively involved in daily operations, especially during the initial development phase. You or a qualified operating partner with an equity stake must run the business full-time.
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