How much does it cost to open a Five Guys franchise?

The total initial investment for a Five Guys franchise ranges from $977,850 to $1,375,750. This includes the franchise fee of $25,000, buildout costs, equipment, and initial working capital.

What are the ongoing fees for a Five Guys franchise?

Five Guys franchisees pay a 6.0% royalty fee and a 2.0% advertising/marketing fund contribution. These are typically calculated as a percentage of gross revenue.

How much money can you make with a Five Guys franchise?

Five Guys does not disclose financial performance data (Item 19) in their FDD. Revenue and profitability figures are not publicly available from the franchisor.

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Fast Casual 945 Units

Five Guys Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$977,850 – $1,375,750

Franchise Fee

$25,000

Royalty Rate

6.0%

Initial Investment Range

Low: $977,850 High: $1,375,750

The total initial investment to open a Five Guys franchise ranges from $977,850 to $1,375,750, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $25,000.

Midpoint estimate: $1,176,800

Franchise Fee

$25,000

One-time initial fee

The Five Guys franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the Five Guys brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

6.0%

of gross revenue

Ad/Marketing Fund

2.0%

of gross revenue

Total Ongoing Fee Burden: 8.0% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type	Rate	Type	Notes
Royalty Fee	6.0	PCT	8% for Restaurants in Alaska, Hawaii or Puerto Rico. Withdrawn by electronic wire transfer on Wednesdays. Minimum $3,000 balance required in designated bank account.
Creative Fund	2.0	PCT	Currently 2%, can increase up to 4% of Gross Sales. Withdrawn by electronic wire transfer on Wednesdays. Franchisor may reduce contribution at their discretion. Total aggregate of Creative Fund, Cooperative, and Local Advertising cannot exceed 4% of Gross Sales.
Bread Products	N/A	VARIABLE	Varies depending on needs. Withdrawn by Five Guys Bakery via electronic wire transfer on Mondays.
Local Advertising	2.0	PCT	Not less than 2% of Gross Sales. Contributions to Cooperative credited against local advertising and Creative Fund obligations. Paid to third parties. Total aggregate of Creative Fund, Cooperative, and Local Advertising cannot exceed 4% of Gross Sales.
Cooperative Advertising	1.5	PCT	Maximum 1.5% of Gross Sales, credited towards Local Advertising. Due as determined by Cooperative. May be allocated by franchisor to Creative Fund. No Cooperatives established as of FDD date.
Interest	10.0	PCT	Lesser of 10% per annum or maximum rate allowed by law. Charged on all overdue amounts on demand.
Advertising & Promotional Materials	N/A	VARIABLE	Varies depending on advertising needs. Billed when incurred.
Prohibited Product or Service Fine	250.0	FIXED	In addition to other remedies available to franchisor. If incurred.
Initial Training of additional or replacement and successor personnel	1500.0	FIXED	No charge for initial training of Operating Principal, general manager and one assistant manager. Due before training.
Additional Assistance	500.0	FIXED	Current per diem is $500 plus associated costs. Opening assistance provided without charge. When billed.
Cash Register Upgrades	5000.0	FIXED	Approximately $5,000. Annual payments to third-party vendor for Computer System maintenance. Several updates and upgrades anticipated during franchise term. When incurred.
Transfer Fee	5000.0	FIXED	Reimburses franchisor costs and expenses. No fee for transfer to corporation controlled by same interest holders. Similar amount charged under Development Agreement. Due with transfer application.
Additional or Remedial Training	1500.0	FIXED	Currently $1,500. For non-mandatory training only. No charge for mandatory training but franchisor reserves right to reimbursement. Cost varies by staff, location, and type. Due before additional training.
Inspection and Testing	5000.0	FIXED	Currently estimated at $5,000. Paid to franchisor or independent laboratory. When billed.
Vendor/Equipment Approval Fee	5000.0	FIXED	Covers costs to evaluate new vendor and equipment not on approved list. As incurred.
Audit Fee	5000.0	FIXED	Currently estimated at $5,000. Only payable if understatement exceeds 2% after audit. When billed.
Late Payment or Reporting Fee	50.0	FIXED	Charged daily if late on royalty payments or weekly reports. In addition to interest penalties.
Site Evaluation Fee	500.0	FIXED	Currently $500. For additional on-site evaluations or if not first Restaurant. Plus reasonable expenses for travel, lodging, meals and wages. If incurred.
Relocation Fee	7500.0	FIXED	Covers costs to review proposed relocation of currently operating Restaurant. Only assessed if approved, not if denied. If incurred.
Gift Card Program	N/A	VARIABLE	Mandatory participation. All gift cards available for purchase and redemption at any Restaurant. Reimbursement procedures for cross-Restaurant transactions. Administration controlled by franchisor or affiliate. See note 5 for details.
Time Extension Fee	10000.0	FIXED	On approval of extension. Extension runs for additional 90-day period beginning on expiration of applicable development period including previous extensions.

What You Get

Unit Growth & Failure Rate

Avg. Annual Closure Rate

2.1%

Low risk — below industry average

Net Unit Growth

-34 units

From 2022 to 2024

Unit Activity History

Year	Start	Opened	Closed	Transfers	End
2022	979	—	—	—	899
2023	899	—	—	—	924
2024	924	—	—	—	945

Is a Five Guys Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the Five Guys franchise opportunity:

Overall Score

49/100

Moderate opportunity

Est. Payback Period

N/A

Insufficient data

Risk Level

Low

2.1% annual closure rate

Five Guys shows a moderate score across our evaluation criteria. Careful due diligence is recommended. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.