Quick Verdict · who it fits
Five Guys fits first-time franchise buyers looking for a mature food & beverage concept.
The numbers a buyer needs first — straight from the filing.
Initial investment (Item 7)
$928K - $1.4M
Franchise fee (Item 5)
$25K
Royalty (Item 6)
6–8% + 2% ad
System size (Item 20)
970 +37
Agreement term
10 yrs
Years in business
9+ yrs
Training (Item 11)
10 days
Company-owned units
613
Item 3 litigation
None disclosed
Model Five Guys's costs in the investment calculator → Prefilled from this filing — startup cost, cash flow and break-even.
Buyer qualifications
•No exclusive territory•Owner-operator required✓No bankruptcy disclosed✓No Item 3 litigation
Data extracted from the 2026 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.
Drag to your projected annual sales. Royalty 6–8% + ad fund 2% on gross sales.
PROJECTED ANNUAL SALES$500,000
$100k$2M
Royalty (6–8%)
—
Ad fund (2%)
—
Total / year
—
▪ Of-sales fees only · excludes rent, labor, COGS, and one-time costs · for illustration
Free AI summary — the first read on the filing.
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
What our analysis flagged across the 2026 filing.
5
Risks to review
3
Strengths identified
4
Questions to ask
How Five Guys ranks against 811 Food & Beverage peers we've analyzed.
Initial investment
86th pct · of 811 peers
Franchise fee
10th pct · of 811 peers
System size
94th pct · of 811 peers
Food & Beverage industry averages
Avg investment
$528K - $1.3M
Avg franchise fee
$38K
Avg system size
235
Franchises analyzed
811
Closest concepts by category and investment.
| Brand | Item 19 | Fee | Investment | Royalty | Units |
|---|---|---|---|---|---|
| Five Guys | None | $25K | $928K - $1.4M | 6–8% | 970 |
| FreshSimilar price | Disclosed | $45K | $773K - $1.4M | 6% | 4 |
| Doctor's AssociatesBiggest system | None | $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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Free explainers to go deeper before you sign.
Brand Analysis
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Brand Analysis
Chipotle reported 4,186 company-operated restaurants and 15 international licensed restaurants as of June 30, 2026. None are franchised, there is no FDD, and there is nothing to apply for. Qdoba is the franchised version of the same order line, and its 12/25 FDD puts a traditional restaurant at $548,100 to $1,294,000.
Brand Analysis
Cracker Barrel Old Country Store, Inc. reported 656 company-operated stores in 43 states as of January 30, 2026, and the brand has never sold a franchise. Huddle House and Another Broken Egg cover the same daypart with filed FDDs, at $555,375 to $1,715,275 and $792,500 to $1,804,000.
Five Guys requires a $25,000 initial franchise fee and a total initial investment range of $927,850–$1,375,750, per the most recent FDD on file.
Five Guys franchises are sold by FIVE GUYS FRANCHISOR, LLC, the franchisor entity of record on its Franchise Disclosure Document. Item 1 of the FDD discloses the corporate structure, including any parent companies and predecessors.
No. Five Guys does not include a financial performance representation in its FDD. Prospective buyers should rely on validation calls with existing franchisees and benchmark against industry medians.
Franchisees pay a royalty of 6% of Gross Sales (8% in Alaska, Hawaii and Puerto Rico) and an advertising fund contribution of 2% on gross sales as defined in Item 6 of the FDD.
As of their 2026 FDD, Five Guys has 970 total locations, with 37 new locations opened in the most recent reporting year. This information comes from Item 20 of the FDD.
Yes. Five Guys' 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.
No. Five Guys 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.
Per the FDD, Five Guys discloses an initial agreement term of 10 years. Review Items 10 and 17 for the full renewal and termination provisions.
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