If you have ever wondered about the real Five Guys franchise cost, you are not alone. In recent years, the brand has emerged as one of the most recognisable and profitable fast-casual burger chains in the United States, drawing attention from entrepreneurs eager to get a slice of the action.
The surge in demand for burger franchises across the US is not just a passing trend. According to IBISWorld, the burger industry in the US generated over $143 billion in 2023 and continues to grow steadily.
Consumers are leaning towards quality-focused, premium burger experiences, something Five Guys has built its reputation on with fresh ingredients, made-to-order meals, and no freezers in sight.
For investors, this means that food franchise investments, particularly in the fast-casual segment, remain resilient even in uncertain economic climates.
In this guide, we will unpack everything you need to know about the Five Guys franchise. You will get a detailed breakdown of the franchise cost, fees, profit margins, and step-by-step instructions on how to start a Five Guys franchise.
Along the way, where relevant, we will share tools and resources available to help you succeed, like ready-to-use business plan templates and visibility opportunities through our advertising platform at Entrepreneurs.ng.
See also: Proven steps to start a successful business.
Key Takeaway
- While not yet available in every country, international expansion is possible for qualified partners with a strong business plan and significant capital.
- The Five Guys franchise cost ranges from 306,000 to 641,000 dollars, with strong average sales potential of over 1.2 million dollars per store.
- Franchisees must meet specific Five Guys franchise requirements, including a minimum net worth of 500,000 dollars and 250,000 dollars in liquid capital.
- With its simplified operations, premium brand reputation, and proven profitability, Five Guys is a top-tier food franchise investment for hands-on entrepreneurs.
What is Five Guys? – The Brand Behind the Burgers
Five Guys is more than just a burger joint. It is a fast-casual restaurant chain that has built a cult following across the United States and beyond.
Launched in Arlington, Virginia, in 1986 by Jerry and Janie Murrell and their five sons, Five Guys quickly became known for doing one thing really well- serving high-quality burgers and fries in a straightforward, no-nonsense style.
The brand operates with a commitment to freshness and simplicity. There are no freezers in any of its locations, only coolers. The menu is intentionally limited to allow the business to focus on delivering consistent quality across all locations.
This clarity of purpose has helped the franchise grow from a small family business to a major player with more than 1,700 stores globally, over 1,300 of which are in the United States. The chain has been ranked multiple times among the best fast food franchises for its performance and customer loyalty.
One of the key appeals of the Five Guys franchise is its lean operational model, which is built around efficiency, speed, and customer experience.
For aspiring franchisees who want a solid return on their food franchise investment, this setup can be a major advantage. It is also why many consider it one of the best franchise opportunities in the fast-casual space.
Understanding the Five Guys franchise cost is only the beginning. To succeed, you need to fully grasp the brand’s DNA- its values, customer expectations, and operational systems.
Whether you are looking to expand your business portfolio or make your first foray into franchising, knowing what Five Guys stands for is essential before exploring how much it costs to open a Five Guys franchise.
If you are just getting started on your entrepreneurial journey, our Entrepreneurs Success Blueprint can walk you through the process of evaluating franchise models and getting your business idea off the ground. It is part of the tailored tools and resources we offer to help entrepreneurs make smart, profitable moves.
See also: A product on how to become a successful franchise owner.
Five Guys Franchise Cost – What You Will Need to Invest
Understanding the full Five Guys franchise cost is a key step for any entrepreneur exploring this opportunity. It is not just about paying a fee and opening a shop.
You need a clear picture of what it takes financially to build, launch, and operate a Five Guys franchise successfully in the US market. The investment is significant, but so is the potential return if managed well.
Franchise Fee
The starting point is the Five Guys franchise fee, which is typically around 25,000 dollars. This one-time payment gives you access to the brand, its proprietary systems, training, and ongoing support.
It also signals your commitment to operating within Five Guys’ proven model, which has been fine-tuned over the decades.
Compared to other fast food franchises, this fee is relatively moderate, especially when weighed against the strength of the brand name and customer loyalty.
Total Estimated Startup Investment
The overall Five Guys franchise cost ranges from approximately 306,000 to 641,000 dollars. This figure depends on factors like location, size of the store, regional construction costs, and lease agreements.
It is a significant investment, so it is important to plan carefully and secure sufficient capital before moving forward.
Breakdown of Startup Costs
To help you better understand where your money goes, here is a general breakdown of what the startup investment typically includes:
- Construction and leasehold improvements
- Equipment and kitchen setup
- Furniture, fixtures, and signage
- Initial inventory and supplies
- Point-of-sale (POS) systems and software
- Insurance and business licensing
- Legal and professional fees
- Opening marketing and promotional costs
- Initial staffing and payroll reserves
These costs will vary by region, especially depending on real estate prices and labour rates. It is wise to overbudget slightly to accommodate unexpected expenses.
Ongoing Operating Fees
Once your store is running, there are recurring costs to keep in mind. Five Guys charges a royalty fee of 6 per cent of your gross sales.
There is also a marketing contribution, which typically falls between 2 and 3 per cent. These fees fund national advertising efforts and ongoing corporate support, which can help drive foot traffic and keep your brand top-of-mind.
Beyond these, you will need to manage standard business costs like rent, utilities, maintenance, staff salaries, and insurance. These operating expenses will directly affect your profit margins and should be built into your financial forecasts.
Working Capital Requirements
It is not enough to only cover the setup costs. You will also need working capital to keep operations running smoothly during the first few months.
Most new franchisees are advised to have at least 100,000 to 150,000 dollars in liquid capital set aside for this purpose. This buffer ensures you can handle cash flow challenges while building up your customer base.
Starting a Five Guys franchise is not a low-budget venture, but with the right preparation and tools, it can be a strong addition to your investment portfolio.
See also: Best Franchises to Own for Beginners: Top Opportunities for First-Time Entrepreneurs
Five Guys Franchise Requirements
Before diving into the application process or calculating how much it costs to open a Five Guys franchise, it is important to know if you meet the Five Guys franchise requirements.
Like most top-tier fast food franchises, Five Guys looks for franchisees who have the right mix of capital, business experience, and a strong operational mindset.
Meeting these qualifications is essential to move forward in what can be a highly competitive selection process.
Financial Requirements
To qualify, prospective franchisees must meet certain financial thresholds. Five Guys requires that applicants have a minimum net worth of 500,000 to 1 million dollars, with at least 250,000 dollars in liquid assets.
This ensures you have the resources to cover the initial Five Guys franchise cost and sustain the business through its early stages.
If you are considering applying for multiple units, your financial requirements will scale accordingly. Five Guys is selective about who it partners with, and strong financial stability is one of their non-negotiables.
Experience and Operational Background
While Five Guys does not require that you have previous experience in the restaurant industry, having a background in food service, retail, or operations management is a major plus.
The Five Guys franchise model is straightforward but demanding. Running a fast-casual franchise successfully requires hands-on leadership, people management, and an understanding of day-to-day store operations.
If you are planning to be an absentee owner, Five Guys will likely require you to have an experienced, full-time operator managing the business on-site.
This is not a passive investment. Franchisees are expected to be involved and uphold the brand’s quality and service standards.
Business Mindset and Cultural Fit
Five Guys looks for franchise partners who align with its core values – quality, consistency, and simplicity. The brand takes customer experience seriously, and franchisees are expected to create an environment that reflects the company’s reputation for friendly service and great food.
Being responsive, committed, and operationally sharp is key to maintaining the standards that keep customers coming back.
This is where having the right entrepreneurial mindset pays off. If you are detail-oriented, passionate about delivering excellence, and ready to put in the work, you will likely be seen as a strong candidate.
Real Estate and Territory Requirements
Five Guys franchise requirements also include guidelines around location. You must secure a site that meets their criteria in terms of visibility, size, parking, foot traffic, and overall accessibility.
A typical Five Guys outlet ranges between 2,000 and 3,000 square feet and is usually located in high-traffic commercial areas, shopping centres, or standalone spaces.
Five Guys offers exclusive territory rights in some cases, depending on the agreement and market saturation. It is important to do a competitive analysis of your chosen region to ensure your location stands out and has room to thrive.
See also: Chicken Salad Chick Franchise Cost – Fees, Requirements, Investment & Profit Breakdown
How to Start a Five Guys Franchise – Step-by-Step
Starting a Five Guys franchise is not as simple as filling out a form and opening the doors. It is a structured, multi-stage process designed to ensure that both the franchisee and the franchisor are aligned.
If you are serious about owning a Five Guys franchise, it is important to understand every step and meet all expectations along the way.
Below is a comprehensive look at how to start a Five Guys franchise from initial interest to grand opening.
Step 1: Submit a Franchise Application
The journey begins with completing the official franchise inquiry form on the Five Guys website. This initial application asks for your basic personal and financial information.
It gives the franchisor a snapshot of your eligibility to meet the Five Guys franchise cost and other key requirements.
You will need to provide details such as your net worth, liquid capital, professional background, and preferred location or territory.
This information helps the franchise development team assess whether you are a suitable candidate to proceed to the next phase.
Step 2: Participate in the Franchise Interview Process
If your application meets the preliminary Five Guys franchise requirements, a franchise representative will contact you to begin a series of interviews.
These conversations are designed to understand your motivation, management style, and long-term business goals. It is also your chance to ask deeper questions about how the franchise works and whether it fits your vision.
Expect a mix of phone interviews, video calls, and in some cases, a face-to-face meeting with the corporate team. Five Guys is selective. They want to partner with entrepreneurs who align with the brand’s customer-first culture and operational expectations.
Step 3: Review the Franchise Disclosure Document (FDD)
If you pass the initial screening, you will receive the Franchise Disclosure Document. This is a legal document that outlines the full scope of the Five Guys franchise cost, obligations, fees, earnings potential, and all legal terms of the agreement.
Take your time to review this thoroughly with a qualified franchise attorney. The FDD includes important information such as:
- Franchise fee and total investment
- Territory rights
- Ongoing royalty and advertising fees
- Training and support details
- Franchisee obligations
Understanding the FDD is essential before committing financially or signing any agreements.
Step 4: Attend a Discovery Day
Next, you will be invited to attend a Discovery Day at the Five Guys headquarters or a regional office. This in-person event allows you to meet the corporate team, ask questions directly, and get a feel for the company’s operations and values.
You may also get the chance to visit a working Five Guys store to observe its systems in action.
Discovery Day is not only for the brand to evaluate you, it is also for you to confirm that this is the right business move. Many entrepreneurs find that this experience gives them the final clarity they need.
Step 5: Secure Financing and Finalise Your Investment
Once you are approved, it is time to make the numbers work. You will need to confirm your access to the capital required to cover the total Five Guys franchise cost, which generally ranges from 306,000 to 641,000 dollars.
Most franchisees use a mix of personal funds, loans, and third-party financing to raise the capital. You may explore:
- SBA (Small Business Administration) loans
- Traditional business loans
- Franchise-specific funding partners
Having a solid business plan is critical at this stage. If you need a professional-grade plan that is easy to customise, check out our business plan template in the Entrepreneurs.ng shop. It is designed to help franchise investors secure funding faster and with more confidence.
Step 6: Sign the Franchise Agreement
With financing in place, the next step is to sign the franchise agreement. This legally binds you to the terms outlined in the FDD and officially makes you a Five Guys franchisee.
Make sure all your questions are answered before signing. It is advisable to have a lawyer and financial advisor review the agreement with you to ensure you fully understand your rights and responsibilities.
Step 7: Choose Your Location and Begin Build-Out
After the agreement is signed, site selection begins. Five Guys works closely with you to approve your proposed location based on traffic, visibility, square footage, and lease terms.
Once a site is chosen, you can move into the construction and fit-out phase.
You will work with approved architects and contractors to ensure your store meets the brand’s design standards. This phase includes everything from plumbing and kitchen setup to signage, furniture, and POS systems.
Step 8: Complete Franchise Training
While your store is being built, you and your management team will attend mandatory training. Five Guys provides in-depth operational and leadership training that covers:
- Food preparation standards
- Customer service protocols
- Inventory and supplier systems
- Health and safety regulations
- Hiring and staff management
This hands-on training is typically conducted at an existing Five Guys location and is designed to prepare you for the realities of day-to-day operations.
Step 9: Hire Your Team and Prepare for Opening
With training complete and your build-out nearly done, it is time to hire your staff. Depending on your location size, and volume, you will need a team of 20 to 30 employees, including cooks, cashiers, and shift supervisors.
You will also begin local marketing to generate buzz before your opening day. Five Guys provides marketing guidelines, but you will have flexibility to localise your efforts.
If you want to supercharge your launch and make sure your business gets seen by the right people, consider our advertising packages at Entrepreneurs.ng. They are designed to help entrepreneurs and franchise owners reach a wide audience of business-minded consumers across digital platforms.
Step 10: Grand Opening and Ongoing Operations
Once everything is in place, you are ready to open your doors. The Five Guys team will usually send support staff to assist during the first few days to ensure a smooth opening.
From here, you will be responsible for day-to-day operations, maintaining quality, managing staff, and hitting your financial targets. Five Guys continues to provide support in the form of regional managers, ongoing training, and marketing materials.
Getting started with a Five Guys franchise is a step-by-step process that requires commitment, planning, and operational excellence. But for those who follow the path with clarity and preparation, it can be a profitable long-term investment.
See also: Wawa Franchise Alternatives: Top Convenience Store Franchises To Own
How Much Does a Five Guys Franchise Make
Once you understand the Five Guys franchise cost and requirements, the next question is obvious: how much does a Five Guys franchise make?
Profitability is a key factor in any food franchise investment, and with a brand as prominent as Five Guys, the potential is strong.
However, like all businesses, the numbers depend on location, management, operational efficiency, and customer volume.
Average Sales and Revenue per Location
According to the latest data published in Five Guys’ Franchise Disclosure Document, the average gross annual sales for a traditional Five Guys franchise in the United States is approximately 1.2 million to 1.6 million dollars per unit.
These figures place the brand among the top-performing fast-casual franchises in the burger segment.
That said, individual store performance can vary. A well-located store in a busy urban centre may generate higher sales, while a suburban location with limited foot traffic could fall below the average.
Several factors impact store performance, including:
- Real estate quality and visibility
- Local competition
- Staffing and service quality
- Marketing and community engagement
- Weather and seasonal footfall
If you are exploring the best fast food franchises with consistent brand power and high foot traffic potential, Five Guys remains a competitive option in the U.S. market.
Understanding Net Profit Margins
Gross sales are one thing, but how much does a Five Guys franchise make in terms of net profit? After accounting for royalties, operating costs, payroll, and other expenses, the average net profit margin for a Five Guys franchise tends to range between 10 and 15 per cent.
That translates to around 120,000 to 240,000 dollars in annual profit for a well-run location generating average sales.
Key expenses that impact profit include:
- 6 per cent royalty fee on gross sales
- 2 to 3 per cent national marketing contribution
- Lease or property costs (can vary greatly by region)
- Staff wages and benefits
- Food and packaging supplies
- Utilities, maintenance, and insurance
Strong operational management and cost control are critical to maintaining a healthy bottom line. Many franchisees who closely monitor inventory, invest in staff training, and focus on local customer engagement tend to outperform the averages.
Break-Even Timeline and Return on Investment
With a startup investment that can go as high as 641,000 dollars, most Five Guys franchisees aim to recoup their initial costs within 3 to 5 years, depending on performance.
Stores with prime locations and strong community support may achieve break-even in less than three years, especially if sales exceed expectations.
The break-even timeline will vary depending on your:
- Initial construction and setup costs
- Financing structure and loan terms
- Ongoing overheads and local wages
- Personal involvement and management style
If you are looking to accelerate your return, it is essential to have a well-structured business plan.
Real-World Performance: Case Studies and Franchisee Reports
While exact income figures are not always disclosed publicly by individual franchisees, multiple reports from operators and franchise publications confirm that Five Guys is consistently profitable when run efficiently.
In 2022, Franchise Times listed Five Guys among the top 20 fastest-growing franchises in terms of unit sales volume and brand momentum.
Several franchisees across California, Florida, and New York have reported annual revenues above 1.5 million dollars per store, according to interviews with QSR Magazine and Franchise Business Review.
These franchisees attribute their success to prime locations, local marketing strategies, and a strong commitment to the brand’s operational standards.
If you want your store to become a local favourite, visibility matters. Consider exploring our advertising packages on Entrepreneurs.ng, where we help franchise owners and business leaders promote their offerings to a curated audience of engaged entrepreneurs and professionals. It is a simple way to boost brand exposure while attracting partnerships, staff, and local awareness.
Is Five Guys a Profitable Franchise for You?
While no franchise guarantees profit, Five Guys has a proven track record of financial performance and brand loyalty. Its lean menu, high ticket average, and strong operational support give franchisees a solid foundation for long-term growth.
However, success ultimately depends on your approach- financial planning, location choice, hiring decisions, and daily execution.
Up next, let us explore the pros and cons to help you decide whether Five Guys is the right fit for your franchise goals.
See also: CAVA Franchise Alternatives: Best Mediterranean Restaurant Franchises to Invest in.
Is Five Guys a Good Franchise? Pros and Cons Explained
When evaluating franchise opportunities, one of the most important questions to ask is this: Is Five Guys a good franchise for you?
The answer depends on your financial goals, operational style, and what you are looking for in a business model.
Five Guys has earned its place among the top food franchise investments in the US, but like any business, it comes with both strengths and challenges.
Let us take a closer look at the key pros and cons so you can decide if the Five Guys franchise aligns with your vision.
Pros of Owning a Five Guys Franchise
Strong Brand Recognition
Five Guys is a household name. With more than 1,700 locations worldwide and a loyal customer base, it ranks consistently among the best fast food franchises in terms of consumer awareness and satisfaction.
The brand’s focus on fresh, made-to-order burgers and fries gives it a competitive edge in the saturated burger market.
As a franchisee, you benefit from this reputation instantly. Customers already trust the Five Guys name, which can help drive traffic and reduce the time it takes to build a loyal following.
High Revenue Potential
As discussed earlier, the average Five Guys franchise generates over 1.2 million dollars in annual sales, with some locations exceeding 1.5 million.
This positions Five Guys among the top performers in the fast-casual segment. When run efficiently, a Five Guys franchise can produce a strong return on investment over time.
This high-earning potential makes the Five Guys franchise cost more justifiable, especially when combined with smart operational strategies and strong community engagement.
Simplified Menu and Operations
Unlike competitors that offer sprawling menus, Five Guys keeps things simple. The focus is on burgers, fries, hot dogs, and milkshakes. This limited menu helps streamline operations, reduce inventory complexity, and speed up service.
For franchise owners, this translates to easier staff training, faster turnover, and fewer operational headaches. It is one of the reasons many entrepreneurs choose Five Guys over other fast food franchise options.
Ongoing Support and Training
Five Guys provides robust training before launch and ongoing operational support once your store is open. Franchisees receive help with site selection, construction, store setup, staff training, and marketing guidance.
Even after opening, you will have access to regional managers and corporate resources designed to help you maintain standards and troubleshoot challenges. For first-time franchise owners, this support can be a major asset.
Cons of Owning a Five Guys Franchise
High Initial Investment
While the brand delivers strong returns, the Five Guys franchise cost can be a barrier for some entrepreneurs.
With a startup range between 306,000 and 641,000 dollars, plus ongoing royalty and marketing fees, it is not a low-budget opportunity.
This upfront financial requirement means it is better suited to entrepreneurs with access to capital or the ability to secure funding through banks or investors.
Competitive Market
The US burger market is intensely competitive. You will be going up against major players like McDonald’s, Burger King, Wendy’s, Shake Shack, and a growing list of local gourmet burger spots.
Even though Five Guys has a loyal following, standing out in a crowded landscape requires strategic marketing and exceptional service.
Franchisees need to be proactive about community engagement, local advertising, and customer retention.
This is where our advertising packages can help. They offer visibility among a network of entrepreneurs, professionals, and consumers who are eager to support great businesses.
Operational Commitment
This is not a passive investment. Running a Five Guys franchise takes hands-on involvement, especially in the first few years. You will need to manage staff, ensure food quality, oversee inventory, and handle customer service.
If you are looking for a more hands-off business model, Five Guys might not be the best fit. Success with this brand demands consistency, leadership, and daily involvement in operations.
Limited Flexibility
Five Guys has a well-established brand identity and store format, which means limited room for creativity or personalisation. Menu innovation is controlled at the corporate level, and branding must follow strict guidelines.
If you are someone who enjoys experimenting or wants more freedom in the way you run your business, the rigid franchise model may feel restrictive.
Is It the Right Franchise for You?
Five Guys offers a proven model with strong brand equity, consistent demand, and high revenue potential. If you have the required capital, the drive to operate a busy store, and the desire to align with a high-performance brand, it can be a profitable long-term business.
However, it is important to go in with clear expectations. Like all franchise opportunities, success depends on what you bring to the table -your leadership, attention to detail, and ability to execute consistently.
Alternatives to Five Guys – Other Food Franchise Investments
While the Five Guys franchise offers a solid opportunity for the right investor, it is smart to consider your options before making a decision.
The US fast food landscape is full of thriving brands, each with its own investment range, operating model, and market appeal.
Depending on your financial capacity and business style, there are other food franchise investments that might be a better fit.
If you are asking whether Five Guys is the best franchise opportunity for your goals, the answer lies in comparing it with other top contenders.
Shake Shack
Shake Shack is one of the fastest-growing competitors in the premium burger space. Known for its upscale menu and urban vibe, Shake Shack has carved out a niche with younger, trend-conscious consumers.
However, it is important to note that the brand has only recently begun exploring limited franchising, mainly in international markets.
For those able to access it, the Shake Shack model tends to require a significantly higher investment than the average Five Guys franchise cost, and franchise availability is more restricted.
Smashburger
Smashburger is another solid option in the better-burger segment. It offers a slightly more diverse menu, including chicken sandwiches and salads.
Smashburger’s franchise model is appealing for those who want to be part of a fast-casual chain with room for local adaptation.
The startup costs range from 545,000 to 894,000 dollars, making it a higher investment than Five Guys.
However, the brand does allow for multi-unit agreements, which may appeal to investors looking to scale quickly.
Freddy’s Frozen Custard & Steakburgers
Freddy’s combines classic American burgers with a dessert twist. With its throwback diner feel and strong customer loyalty, Freddy’s has gained traction in mid-sized markets and suburbs.
The total investment ranges from 640,000 to 2 million dollars, depending on location and format. While it requires a larger upfront commitment than the Five Guys franchise cost, Freddy’s offers a diversified menu that can appeal to both lunch and evening crowds.
Culver’s
Culver’s is a Midwest favourite that has expanded steadily across the US. It offers a broader menu including burgers, fried chicken, fish, and frozen custard. Known for its family-friendly environment, it performs well in suburban and highway locations.
The franchise fee is 55,000 dollars, and total startup costs can exceed 2 million dollars, making it a more substantial investment than Five Guys.
However, franchisees benefit from strong regional brand loyalty and a flexible store model.
Other Franchise Opportunities in the Food Sector
If you are still exploring franchise opportunities beyond burgers, consider fast casual options like:
Jersey Mike’s Subs – lower startup costs, strong customer base
Wingstop – fast-growing, focused on wings and delivery-friendly
Tropical Smoothie Cafe – wellness-oriented with a lighter menu
Chipotle – corporate-owned, but worth studying for those interested in future acquisitions
These brands cater to different tastes and demographics, so the best food franchise investment depends on your local market and operational style.
Choosing the Best Fast Food Franchise for You
When comparing these brands to Five Guys, it helps to weigh:
- Total startup costs
- Operational complexity
- Customer demand in your region
- Franchisee support
- Growth potential
Five Guys stands out for its simplified model, strong revenue per location, and brand consistency. But other franchises may offer greater flexibility, broader menus, or unique concepts that better match your goals.
If you are unsure which path to take, our Entrepreneurs Success Blueprint is a great starting point. It walks you through business model analysis, goal setting, and brand positioning, tools that are essential when evaluating franchise options.
We also offer custom business consulting services and ready-made business planning resources to help you confidently move from research to execution.
Can You Start a Five Guys Franchise in Other Countries
The global appeal of Five Guys is undeniable. Known for its premium burgers and fresh, made-to-order menu, the brand has developed a loyal customer base far beyond the United States.
If you are an entrepreneur based outside the US, you may be wondering how to start a Five Guys franchise in your country.
While Five Guys does have an international presence, the expansion process is selective and comes with specific requirements.
Where Is Five Guys Expanding?
Five Guys has already expanded into several countries across Europe, the Middle East, and Asia. Current international markets include the United Kingdom, France, Germany, Spain, Saudi Arabia, Hong Kong, Singapore, and the United Arab Emirates.
The company has followed a deliberate and controlled growth strategy, partnering with established operators capable of managing large-scale food service operations.
If your country is not currently listed, that does not necessarily mean the door is closed. However, entering a new market often requires negotiating a master franchise or development agreement, rather than a standard single-unit franchise setup.
Requirements for Opening a Five Guys Franchise in a New Country
Expanding the Five Guys franchise into a new territory is a major undertaking. The company looks for partners who can demonstrate the experience, scale, and financial backing needed to launch and sustain the brand in a completely new environment.
Here is what you will likely need:
Substantial Financial Resources
International franchise opportunities with Five Guys require a higher level of investment than domestic US stores.
You will need significant capital not only to cover the Five Guys franchise cost but also to support real estate acquisition, staff recruitment, logistics, and marketing across multiple locations.
A minimum liquid capital of several million dollars may be necessary, depending on the size of the territory and the number of stores you propose to develop.
Multi-Unit or Hospitality Experience
Five Guys prefers to work with companies or individuals who have proven success managing multi-unit restaurant chains or large hospitality businesses.
Familiarity with supply chain operations, customer service standards, and franchise compliance is key to earning approval.
If you do not have direct experience, your team should include partners who do. Five Guys will evaluate your leadership structure, operational background, and business history before moving forward.
Market Research and Rollout Plan
To be seriously considered, you will need a clear and comprehensive rollout plan. This should include:
- Market analysis showing demand for a Five Guys-style concept
- Competitive landscape of existing fast food franchises
- Strategy for sourcing quality ingredients locally
- Legal and regulatory considerations in your region
- Timeline and locations for the first five to ten stores
A professional business plan is critical here. If you are preparing to pitch for a master franchise agreement, our paid business plan template can help you organise your proposal with investor-grade precision.
Cultural and Operational Alignment
Five Guys has a strong culture centred around simplicity, consistency, and quality. The company wants partners who understand and will preserve these values in international markets.
Cultural fit is as important as financial capability. Your ability to maintain the same customer experience that US customers expect will play a big role in the approval process.
First Steps to Starting a Five Guys Franchise Internationally
If you meet the requirements and are ready to explore international expansion, your first step is to reach out to Five Guys via their corporate website.
They have a dedicated inquiry form for international franchise requests. Be prepared to present your credentials, business plan, and financial capacity during the early stages of the conversation.
While Five Guys may not be open to every market at every time, they are constantly evaluating opportunities for global growth. Being prepared with a compelling, research-backed proposal could help you get ahead of the curve.
And if Five Guys is not currently expanding into your region, you can still explore other food franchise investments that are active in your country. We recommend visiting our Start A Business section on Entrepreneurs.ng to discover franchise opportunities and proven models for your local market.
Conclusion
Deciding to invest in a franchise is no small decision. It requires capital, commitment, and a clear understanding of what you are getting into.
The Five Guys franchise cost, which ranges from around 306,000 to 641,000 dollars is a significant investment, but it comes with the backing of a globally respected brand, a loyal customer base, and a straightforward operational model that many entrepreneurs appreciate.
So, is Five Guys a good franchise? If you are financially prepared, operationally minded, and driven to manage a high-performing food business, the answer could very well be yes.
The franchise delivers strong average unit sales, robust training and support, and the kind of brand recognition that takes years to build independently. For those who want to tap into one of the best fast food franchises in the US, Five Guys remains a compelling option.
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Frequently Asked Questions About the Five Guys Franchise
How much does a Five Guys franchise cost?
The total Five Guys franchise cost typically ranges from 306,000 to 641,000 dollars. This includes the initial franchise fee, construction, equipment, signage, inventory, and working capital.
Costs can vary depending on location, lease terms, and regional expenses like labour and permitting.
What is the Five Guys franchise fee?
The Five Guys franchise fee is 25,000 dollars. This is a one-time payment that grants you the rights to operate under the Five Guys brand and access their systems, training, and ongoing support.
How much does a Five Guys franchise make per year?
On average, a Five Guys franchise generates 1.2 million to 1.6 million dollars in annual sales. Profit margins vary, but well-run stores often see net profit margins of 10 to 15 per cent, resulting in potential annual profits between 120,000 and 240,000 dollars.
Is a Five Guys franchise profitable?
Yes, the Five Guys franchise can be profitable if managed well. With strong brand recognition, a simplified menu, and consistent customer demand, many franchisees report solid returns on investment.
However, profitability depends on factors like location, staffing, local competition, and operational efficiency.
What are the Five Guys franchise requirements?
To qualify for a Five Guys franchise, you typically need:
- A net worth of at least 500,000 to 1 million dollars
- 250,000 dollars or more in liquid capital
- A background in business, retail, or food service is preferred
- A commitment to being involved in day-to-day operations
How do I apply for a Five Guys franchise?
To start a Five Guys franchise, visit the official Five Guys franchising page and submit an online inquiry.
If your profile aligns with the company’s criteria, a franchise representative will contact you for the next steps, including interviews, financial reviews, and Discovery Day participation.
Can I open a Five Guys franchise outside the United States?
Yes, but it depends on whether the brand is expanding into your country. Five Guys has locations in countries like the UK, Germany, and the UAE, and they partner with master franchisees for international growth.
If you are interested in Five Guys franchise opportunities in other countries, you will need significant financial resources and multi-unit management experience.
How long does it take to open a Five Guys franchise?
The timeline to open a Five Guys franchise ranges from 6 to 12 months. This includes application, approval, site selection, construction, training, and setup.
The process can move faster or slower depending on factors like local permits, build-out timelines, and funding.
Does Five Guys offer multi-unit franchise opportunities?
Yes. Five Guys is open to multi-unit franchise agreements, particularly for experienced operators.
If you are looking to scale quickly or manage several locations, you can apply for a development agreement that outlines the number of stores and timeline for rollout.
What are some alternatives to Five Guys franchise?
If you are exploring food franchise investments, alternatives to the Five Guys franchise include:
- Shake Shack
- Smashburger
- Freddy’s Frozen Custard & Steakburgers
- Wingstop
- Jersey Mike’s Subs
Each brand has different startup costs and operating models, so it is important to compare your options carefully based on your goals and market.
Where can I get help creating a franchise business plan?
At Entrepreneurs.ng, we offer a paid business plan template tailored for franchise businesses. It includes financial projections, market analysis tools, and step-by-step guidance to help you secure funding or franchisor approval. It is available in our shop along with other helpful resources for new business owners.
