Five Guys Burger Franchise Cost, Owner Salary & Profit 2024

Five Guys is one of the biggest fast-food chains in the world, with thousands of operating stores.

With this many stores and high brand awareness, many entrepreneurs are drawn to the idea of operating a Five Guys Burger franchise. Luckily, this is possible because Five Guys offer franchising.

It is one of the best franchises that can be counted in the 50 top franchises that one must own.

This article will take a look at Five Guys’ franchise model, the associated costs, and all the other details.

Five Guys Burger Franchise

About Five Guys Burger

Five Guys is a fast-food franchise chain specializing in hamburgers and fries. The company was founded in 1986 in Virginia, and its headquarters are still there.

The Five Guys menu includes hamburgers, fries, hot dogs, milkshakes, grilled cheese, sandwiches, and similar fast food.

In 2003, Five Guys started franchising which led to the company’s rapid expansion, resulting in over 300 franchised locations in the first year alone.

This led to them being the fastest-growing fast-food chain in the United States, and they currently have over 1,600 worldwide.


Five Guys Burger Franchise Model

Initial Investment       $306,200-$716,250
FranchiseYES
Franchising Since2003
Franchise-Fee$25,000
Royalty-Fee6%
Liquidity$250,000
Estimated Outlets1,600

How Much Does It Cost to Open a Five Guys Burger Franchise?

The total average cost to open Five Guys varies between $306,200 and $716,250.

This total cost includes all kinds of startup costs, including the $25,000 franchise fee that you pay at the beginning.

Depending on your state, there might be additional fees that you need to pay or higher costs.


Five Guys Burger Franchise Requirements

Requirements of Five Guys Burger Franchise

You need to have a minimum liquidity of $250,000 for the financial requirement.

They do not look for minimum net worth. On the professional background side, having a background in the food industry or as a manager is a big plus.

However, it’s optional, and they don’t strictly look for experience in the industry.


Five Guys Burger Profit & Revenue

Five Guys don’t share the franchises’ financials with the public, so it’s not easy to come up with an average number.

The latest report of the company’s financial report in 2021 states that they had a revenue of $1.2 billion. There is no mention of the net profit of the company for the same year.

Taking a look at the latest outlet numbers, we can conclude that an average Five Guys franchise owner makes a revenue of anywhere between $700,000 to $900,000 annually. These numbers could vary a lot based on different factors of your store.

So if we consider a profit margin of 29%, then we can calculate that Five Guys Burger franchise owner make $261,000 in annual net profits on average.

This is how we calculated this figure:

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%900000.00
Rent8.88%(79875.00)
Insurance4.44%(39937.50)
Salaries17.75%(159750.00)
Franchise Royalty Fees4.44%(39937.50)
Utilities1.77%(15975.00)
Cost of Goods Sold (COGS)22.19%(199687.50)
Labor (Variable)11.54%(103837.50)
Total (Expenses)71.00%(639000.00)
Net Profit29.00%261000.00

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.


Five Guys Burger Training and Support

The general manager, assistant manager, and the operating principal of the store must attend the initial training that lasts for two weeks at the company’s headquarters.

There is also additional training where the franchisor trains the designated employees. You can add more employees to the training, but it costs $1,500 per person.

Franchisor provides a trained representative for the opening of the store and after opening for operational support.

This representative stays at the store for ten days to provide training, supervision, and management assistance.


Five Guys Burger Terms Of Agreement and Renewal

The initial agreement’s length is for ten years. This agreement has a renewal option if you meet the requirements, don’t breach your first agreement, and the franchisor is satisfied with you. The renewal is for an additional consecutive ten-year term.


Five Guys Burger Obligations and Restrictions

Five Guys Burger Obligations and Restrictions

The franchisee is obligated to have a present general manager and the required personnel for the operation and management of the store.

The general manager must meet the educational and business requirements written in the franchise agreement.

All the products you buy and sell in the store must comply with specific standards the franchisor sets beforehand.

The franchisee must also offer all menu items and other products the franchisor requests in the manner the franchisor asks.


Five Guys Burger Financial Assistance

Five Guys don’t offer whether direct or indirect financial assistance or any kind of financial arrangement. All franchisees must find their own financing without the help of Five Guys.


Five Guys Burger Comparison

NameFranchise FeeRoyalty FeeInitial Investment
Burger King$2,500-$50,0004.5%$232,300-$4.5 million
Smashburger$40,0005.5%$1.3 million-$2.3 million
Five Guys$25,0006%$306,200-$716,250

Conclusion

Five Guys is a highly famous fast-food chain with over 1,600 outlets worldwide. After they started franchising, they were ranked as one of the fastest-growing franchise chains in the United States.

You pay a $25,000 franchise fee and can expect an average initial investment between $306,200 and $716,250.

There are no official profit or revenue numbers per franchised store for Five Guys, but the expected revenue is between $700,000 and $900,000 annually.

There is massive potential to make good money and own a good business if you are interested in a Five Guys franchise.


FAQ

How much is the franchise fee for the Five Guys franchise?

The franchise fee is $25,000. It’s paid in a lump sum, and it’s the first fee you pay.

Is Five Guys a franchise?

Yes. Five Guys is actively a franchise. They have been offering franchising opportunities since 2002 to those who meet the requirements.

Sources

https://en.wikipedia.org/wiki/Five_Guys#Menu

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