Five Guys Franchise Review 2025: Ratings & Verdict

Product details

Contents

Key facts


The Verdict

Quick Verdict · who it fits

FIVE GUYS FRANCHISOR, LLC fits first-time franchise buyers looking for a mature food & beverage concept.

✓ Strengths

⚠ Risks to review

Key FDD Facts

The numbers a buyer needs first — straight from the filing.

Initial investment (Item 7)

$978K - $1.4M

Franchise fee (Item 5)

$25K

Royalty (Item 6)

6% + 2–4% ad

System size (Item 20)

1,558 +35

Agreement term

10 yrs

Years in business

9+ yrs

Training (Item 11)

10 days

Company-owned units

613

Item 3 litigation

None disclosed

Buyer qualifications

•No exclusive territory•Owner-operator required✓No bankruptcy disclosed✓No Item 3 litigation

Data extracted from the 2025 FDD filed with state regulators. Fees and terms may have changed since filing — request the current FDD from the franchisor before deciding. Not legal, financial, or investment advice. Full disclaimer.

What you'd pay the franchisor

Drag to your projected annual sales. Royalty 6% + ad fund 2–4% on gross sales.

PROJECTED ANNUAL SALES$500,000

$100k$2M

Royalty (6%)

Ad fund (2–4%)

Total / year

▪ Of-sales fees only · excludes rent, labor, COGS, and one-time costs · for illustration

Executive Summary

Free AI summary — the first read on the filing.

Key Numbers

1,558

Total units open

67

Units opened last year

35 franchised, 31 company-owned, 1 acquired by franchisee

27

Units closed last year

14 franchised, 14 company-owned

37

Net unit growth

AI Due Diligence Findings PREMIUM

What our analysis flagged across the 2025 filing.

5

Risks to review

3

Strengths identified

4

Questions to ask

Industry Benchmarks

How Five Guys ranks against 561 Food & Beverage peers we've analyzed.

Initial investment

86th pct · of 561 peers

Franchise fee

14th pct · of 561 peers

System size

94th pct · of 561 peers

Food & Beverage industry averages

Avg investment

$594K - $1.4M

Avg franchise fee

$44K

Avg system size

346

Franchises analyzed

561

How Five Guys stacks up

Closest concepts by category and investment.

Brand Item 19 Fee Investment Royalty Units
Five Guys Disclosed $25K $978K - $1.4M 6% 1,558
Sacco RestaurantsSimilar price Disclosed $50K $491K - $1.4M 5% 12
Doctor's AssociatesBiggest system Disclosed $15K $227K - $630K 8% 18,773
Vintage Hospitality GroupTop-rated in category Disclosed $50K $3.5M - $6.4M 5.5% 33

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Frequently Asked Questions

How much does a FIVE GUYS FRANCHISOR, LLC franchise cost?

FIVE GUYS FRANCHISOR, LLC requires a $25,000 initial franchise fee and a total initial investment range of $977,850–$1,375,750, per the most recent FDD on file.

Does FIVE GUYS FRANCHISOR, LLC disclose financial performance (Item 19)?

Yes. FIVE GUYS FRANCHISOR, LLC discloses Item 19 financial performance representations in its FDD. See the financials sub-page for the disclosed figures.

What ongoing fees does FIVE GUYS FRANCHISOR, LLC charge?

Franchisees pay a royalty of 6% and an advertising fund contribution of 2.0% to 4.0% on gross sales as defined in Item 6 of the FDD.

How many FIVE GUYS FRANCHISOR, LLC locations are there?

As of their 2025 FDD, FIVE GUYS FRANCHISOR, LLC has 1,558 total locations, with 35 new locations opened in the most recent reporting year. This information comes from Item 20 of the FDD.

Does FIVE GUYS FRANCHISOR, LLC offer franchisee training and support?

Yes. FIVE GUYS FRANCHISOR, LLC's most recent FDD documents approximately 10 days of initial training, typically split between classroom and on-site components. See Item 11 of the FDD for the full training and support schedule.

Does FIVE GUYS FRANCHISOR, LLC grant exclusive territory?

No. FIVE GUYS FRANCHISOR, LLC does not grant exclusive territory rights under Item 12. The franchisor retains the right to operate or grant additional units inside or adjacent to your trade area.

What are the renewal and exit terms?

Per the FDD, FIVE GUYS FRANCHISOR, LLC discloses an initial agreement term of 10 years. Review Items 10 and 17 for the full renewal and termination provisions.

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