2026 FDD Issued Jun 30, 2026 Minnesota Commerce (CARDS)
Five Guys Franchise Cost (2026)
A Five Guys franchise costs an estimated $927,850 – $1,375,750 to open, according to Item 7 of the 2026 Franchise Disclosure Document (FDD). That total includes the $25,000 initial franchise fee (Item 5) and covers this format: Franchise Agreement. Item 6 lists royalty fee: 6% – 8% of Gross Sales, subject to the conditions below. This record has unresolved source-review issues and was published provisionally before independent verification was complete.
Read the source-review hold before using these figures.
- Total investment
- $928K – $1.38MItem 7 source and qualifications
- Franchise fee
- $25KItem 5 source and terms
- Royalty
- 6% – 8% of Gross SalesItem 6 conditions and fee bases apply
- Brand fund
- 2% of Gross SalesItem 6 conditions and fee bases apply
- Liquid capital
- More than $2.5MFranchisor website, checked October 30, 2026 · See conditions
- Net worth
- More than $5MFranchisor website, checked October 30, 2026 · See conditions
What stands out about Five Guys
A development agreement is compulsory even for a single restaurant, but its fee and transportation allowance are outside the restaurant startup table. The development payment does not credit the franchise fee. Item 7 preserves separate estimates for the agreements, so treating the restaurant table as an all-in project budget would omit required spending. The higher regional development fee is separate again from the regional royalty difference.
The advertising obligations are linked, not independent percentages to add without qualification. Local spending applies if the franchisor requires it, and cooperative payments receive credit against that obligation. Item 6 and the attached agreement give different default cooperative ceilings; the draft retains both instead of choosing one. Bread purchases and computer-system maintenance add costs that are not determined by a single annual sales input.
The U.S. franchised-outlet subtotal is distinct from the combined total that also includes Canada. Item 20 supplies both, while Item 19 provides no historical restaurant sales or profit representation. Changes in outlet counts cannot fill that earnings gap; an existing outlet's actual records are a separate disclosure, not an average performance claim for the system.
What are the initial franchise fees and financial requirements for Five Guys?
Item 5 lists an initial franchise fee of $25,000 for Five Guys. Check the cited Item 5 for payment timing, discounts and format-specific terms.
The franchisor's FAQ writes both thresholds with a greater-than sign. The listed amounts do not qualify when met exactly. These minimums come from the franchisor’s website, not from the FDD, and can change: Five Guys franchise page (checked October 30, 2026).
A Development Agreement is mandatory even for one restaurant. Its separate, non-creditable development fee is $50,000 per restaurant, or $125,000 in Alaska, Hawaii or Puerto Rico; it does not reduce the $25,000 franchise fee (PDF pp. 14-15). The Veterans Program reduces the franchise fee to $15,000 for the first restaurant only, for qualifying new U.S. military applicants who personally manage it full-time; it excludes renewals, relocations, replacements, transfers and acquisitions (PDF p. 15). The current policy may refund 75% of the franchise fee if an approved site cannot be obtained within six months and good-faith efforts are demonstrated; the franchisor may revoke it on the stated notice. Required proprietary initial buns cost approximately $350, already included in Item 7 inventory (PDF pp. 15-16 and 21).
Source: Five Guys 2026 FDD, Item 5, PDF p. 15.
How much does it cost to open a Five Guys franchise? (Item 7)
Source: Five Guys 2026 FDD, Item 7, PDF p. 19.
Item 7 of Five Guys’s 2026 Franchise Disclosure Document estimates the total cost to open one franchise agreement at $927,850 – $1,375,750. This total includes the initial franchise fee.
| Expense Category | Low ($) | High ($) |
|---|---|---|
| Franchise Fee | $25,000 | $25,000 |
| Leasehold Improvements | $500,000 | $750,000 |
| Lease Payments and other rental expenses | $7,500 | $25,000 |
| Furniture, Fixtures, Equipment and Decor | $300,000 | $400,000 |
| Signage | $20,000 | $40,000 |
| Initial Inventory | $10,000 | $15,000 |
| Architectural/ Engineering | $15,000 | $30,000 |
| POS Systems | $20,000 | $35,000 |
| Travel, lodging and meals for initial training | $100 | $5,000 |
| Business Supplies | $4,000 | $8,500 |
| Business licenses, permits, utility deposits, etc. (for first year) | $5,000 | $15,000 |
| Delivery and catering expenses | $500 | $1,000 |
| Insurance deposits and premiums | $750 | $1,250 |
| Additional Funds for first 3 months | $20,000 | $25,000 |
| Total | $927,850 | $1,375,750 |
For comparison, the median high-end investment among 25 restaurants & food records without a source-review hold is $1,297,100.
This is the printed Franchise Agreement restaurant estimate, not the full cost including the required Development Agreement. Even a single-restaurant applicant must sign that separate agreement. Its printed additional investment is $52,100 per restaurant, or $127,100 in Alaska, Hawaii or Puerto Rico, comprising the development fee plus $2,100 transportation expenses; the development fee is not credited to the franchise fee (PDF pp. 1, 15 and 22). Rent and insurance estimates cover the first three months. Inventory already includes the approximately $350 proprietary bun purchase. Initial training travel covers the Operating Principal, general manager and one assistant manager only. Additional funds exclude debt service, and the estimates exclude tariff increases above issuance-date levels (PDF pp. 20-22).
What ongoing royalties and fees does Five Guys charge? (Item 6)
Source: Five Guys 2026 FDD, Item 6, PDF p. 16.
Item 6 of Five Guys’s 2026 FDD lists the charges below. Recurring charges and charges triggered by a transfer, renewal or other event have different conditions. Read each fee’s basis and notes before comparing rates.
How to read an Item 6 fee table.
| Fee Type | Amount / Rate | Payment Frequency | Notes & Source |
|---|---|---|---|
| Royalty Fee | 6% – 8% of Gross Sales | Every period | 6% normally; 8% in Alaska, Hawaii or Puerto Rico, not a discretionary sliding rate. Due weekly on Wednesdays. Gross Sales includes delivery, catering and business-interruption insurance proceeds; collected sales taxes actually remitted and isolated fixture sales are excluded. A $3,000 minimum balance is required in the designated account. PDF pp. 18-19. (Item 6, PDF p. 16) |
| Creative Fund | 2% of Gross Sales | Every period | Currently 2%; may rise to 4%. Aggregate Creative Fund, Cooperative and Local Advertising obligation may not exceed 4%. (Item 6, PDF p. 16) |
| Bread Products | Varies | Every period | Varies with bread product needs; paid weekly to Five Guys Bakery. (Item 6, PDF p. 16) |
| Local Advertising | Varies | When it applies | Item 11 and Franchise Agreement section VIII.B say the franchisor may require 2% of Gross Sales annually, not that every restaurant currently pays it. Item 6's amount column says not less than 2%, while its remarks say up to 2%; no unconditional spend is modeled. Approved landlord-marketing and cooperative payments may count toward this obligation. Combined required Creative Fund, cooperative and local advertising spending may not exceed 4% of Gross Sales. PDF pp. 16, 19, 32 and 177. (Item 6, PDF p. 16) |
| Cooperative Advertising | Varies | When it applies | No cooperative existed at issuance. Item 6 prints a 1.5% of Gross Sales maximum, credited toward Local Advertising, with possible Creative Fund allocation. The attached Franchise Agreement section VIII.D instead says 1% unless cooperative members agree to a higher contribution with franchisor approval. The two stated default ceilings are not reconciled; do not treat either as a universal current charge. PDF pp. 16, 19, 33 and 179. (Item 6, PDF p. 16) |
| Interest | Varies | When it applies | Lesser of 10% per annum or the maximum legal rate on overdue amounts. (Item 6, PDF p. 16) |
| Advertising and Promotional Materials | Varies | When it applies | Varies with advertising needs; payable when billed. (Item 6, PDF p. 16) |
| Prohibited Product or Service Fine | $250 | When it applies | Per day of unauthorized use. (Item 6, PDF p. 16) |
| Initial Training of Additional, Replacement and Successor Personnel | $1,500 | When it applies | Per person; specified initial operating-principal and management training included. (Item 6, PDF p. 16) |
| Additional Assistance | Varies | When it applies | Current $500 employee per diem plus associated costs for requested assistance; opening assistance included. (Item 6, PDF p. 17) |
| Cash Register Upgrades | Varies | When it applies | Potential updates/upgrades estimated at approximately $5,000; annual third-party maintenance payments also required. (Item 6, PDF p. 17) |
| Transfer Fee | $5,000 | When it applies | For transfer application review under the Franchise Agreement; a similar fee also applies under the Development Agreement. No fee for an individual or partnership transferring to a corporation controlled by the same interest holders. (Item 6, PDF p. 17) |
| Additional or Remedial Training | $1,500 | When it applies | Per nonmandatory training. Mandatory training is not charged, but costs may be reimbursable. (Item 6, PDF p. 17) |
| Inspection and Testing | $5,000 | When it applies | Per inspection; paid to franchisor or independent laboratory. (Item 6, PDF p. 17) |
| Vendor/Equipment Approval Fee | $5,000 | When it applies | For evaluating a proposed unapproved vendor/equipment. (Item 6, PDF p. 17) |
| Audit Fee | Varies | When it applies | Audit costs, currently estimated at $5,000, if amounts owed are understated by more than 2%. (Item 6, PDF p. 17) |
| Late Payment or Reporting Fee | $50 | When it applies | Per day overdue, in addition to interest. (Item 6, PDF p. 17) |
| Site Evaluation Fee | $500 | When it applies | Per applicable additional on-site evaluation or evaluation for a subsequent restaurant. (Item 6, PDF p. 18) |
| Relocation Fee | $7,500 | When it applies | May be assessed if relocation application approved; not if denied. (Item 6, PDF p. 18) |
| Gift Card Program | Varies | When it applies | Required participation and settlement procedures in Note 5; no standalone fee amount stated. (Item 6, PDF p. 18) |
| Time Extension Fee | $10,000 | When it applies | For each approved additional 90-day development-schedule extension. (Item 6, PDF p. 18) |
Explore annual fees and payback assumptions
This fee schedule cannot be reduced to the calculator’s simple sales-based formula. Enter your own assumptions and check them against the Item 6 terms.
Five Guys startup investment and modeled fees over 10 years
A source check placed this record on review hold. Automatic fee estimates are withheld until the outstanding issues are resolved. Bread purchases and technology costs vary. Local advertising is conditional, and Item 6's cooperative ceiling differs from the attached agreement. Advertising obligations share credits and an aggregate cap. This page does not turn the listed amounts into a uniform total fee estimate. See the fee amounts and definitions in Item 6 above. Open the calculator with your own assumptions.
Item 20: Five Guys franchised outlet history
Source: Five Guys 2026 FDD, Item 20, PDF p. 58.
Item 20 Table 3 reports 898 franchised outlets at the end of 2025. The company-owned table reports a further 613 outlets.
| Year | Franchised at Start | Opened | Reported Exits | At End | Franchise Exit Rate (%) |
|---|---|---|---|---|---|
| 2023 | 831 | 34 | 9 | 856 | — |
| 2024 | 856 | 32 | 13 | 875 | — |
| 2025 | 875 | 34 | 11 | 898 | — |
Calculated outlet totals, net growth and exit rates are withheld because this record has not cleared the current Item 20 source checks. The table retains the outlet counts printed in Item 20. Read the unresolved source issues.
Reported exits include terminations, non-renewals, franchisor reacquisitions and other cessations. A reacquired outlet may continue operating. How we calculate the exit rate. How to read the Item 20 outlet tables.
41 units changed owners in 2025.
Franchised movements use Table 3's expressly printed U.S. Subtotals, not the combined U.S./Canada totals. The combined 2025 total is 970, including 72 Canadian franchised restaurants; the U.S. subtotal is 898 (PDF pp. 58-59). Company-owned totals are from Table 4 (PDF p. 61); transfers are from Table 2 (PDF p. 55).
How much do Five Guys franchise owners make? (Item 19)
Source: Five Guys 2026 FDD, Item 19, PDF p. 53.
Five Guys’s 2026 FDD has no Item 19 financial performance representation, so it gives no official sales, profit or owner-pay figures. Treat any earnings claim you hear from a salesperson with caution, and ask current owners (their contacts are listed in Item 20).
Payback calculator (enter your own assumptions) Check any inputs against this record’s Item 7 startup costs and Item 6 fee rules.
How long is the Five Guys franchise agreement term?
Source: Five Guys 2026 FDD, Item 17, PDF p. 47.
The standard Five Guys franchise agreement runs 10 years, with renewal terms of 10 years.
The restaurant agreement begins at signing, not opening. Renewal requires at least seven months' notice, equipment/premises updates, no breach, possession of the site, the current agreement and general release, and qualification/training compliance. Item 17 says material fees, protected territory and renewal rights remain the same in the new contract.
How long does it take to open a Five Guys franchise? (Item 11)
Source: Five Guys 2026 FDD, Item 11, PDF p. 37.
Item 11 of the 2026 FDD states the time from signing the franchise agreement to opening: about 12 to 18 months.
Franchises with a similar investment range
These published records are selected by proximity to Five Guys’s $927,850 low-end Item 7 investment, starting with Restaurants & Food. Formats, fees and source qualifications differ; the figures are not interchangeable budgets:
Compare other restaurants & food franchises
Frequently Asked Questions about Five Guys
This record has unresolved source-review issues and was published provisionally. Read the specific issues before using these answers.
- What is the initial franchise fee for a Five Guys?
- Item 5 lists $25,000 per restaurant, separate from the mandatory Development Agreement fee. That development fee is required even for one restaurant and is not credited to the franchise fee. The Veterans Program has first-restaurant and owner-operation conditions.
- How much does it cost to open a Five Guys?
- Item 7's Franchise Agreement estimate is $927,850 – $1,375,750. It excludes the mandatory Development Agreement investment, which is listed separately, and debt service. It includes restaurant build-out, equipment, signage and initial inventory; see the table notes for the limited rent, insurance and training periods.
- What is the ongoing royalty fee for Five Guys?
- The 6% – 8% of Gross Sales royalty range reflects location-specific rates: the higher rate applies in Alaska, Hawaii and Puerto Rico. The Creative Fund currently charges 2% of Gross Sales; local advertising and any cooperative contributions have shared credits and an aggregate cap.
- Does Five Guys disclose financial performance representations?
- No. Item 19 supplies no historical sales or profit representation for franchised or company-owned restaurants. It says actual records may be supplied when purchasing an existing outlet. Outlet counts do not establish restaurant earnings.
Sources
Five Guys Franchisor, LLC Franchise Disclosure Document, issued June 30, 2026, as filed with the Minnesota Commerce (CARDS). Read the source FDD PDF. How to get this FDD yourself.
- Item 5: cited PDF p. 15
- Item 6: cited PDF p. 16
- Item 7: cited PDF p. 19
- Item 19: cited PDF p. 53
- Item 20: cited PDF p. 58
- Agreement term (Item 17): cited PDF p. 47
Page references for Five Guys use the PDF viewer's digital page count, not printed page headers. Some viewers download the document instead of opening the referenced page.
If the state document viewer does not open, use Minnesota Commerce's public filing instructions to look up the filing by franchisor name and document date.
Document & verification changelog
- October 30, 2026: Record updated.
- October 28, 2026: Source review hold recorded. Unresolved corrections are listed in this source section.
- October 9, 2026: Provisional publication approved per owner directive: Owner-directed provisional publication before independent source verification was complete.
- October 9, 2026: Initial cost profile published from the 2026 Franchise Disclosure Document (issued June 30, 2026).