Five Guys franchise startup costs run $222K–$1.04M for a premium fast-casual burger concept known for fresh, never-frozen beef and hand-cut fries. With 1,700+ locations globally, Five Guys is one of the most recognized premium burger franchises in the world.
Five Guys franchise costs at a glance
Total investment
$222,000–$1.0M
Franchise fee
$25,000
Royalty
6%
Ad / marketing fee
1%
Liquid capital required
$500,000
Net worth required
$1.5M
Source: Five Guys Franchise Disclosure Document (FDD) · as of 2026-05-06. Figures vary by market and site; verify against the current FDD before signing.
Key takeaways
Total estimated startup cost: $222K–$1.04M (premium fast-casual burgers and hand-cut fries)
Franchise fee: $25,000
Ongoing royalty: 6%; advertising fund: 1%
Net worth requirement: $1.5M+; liquid capital requirement: $500K+
1,700+ locations globally; fresh never-frozen beef; no freezers in stores
Per the current FDD filed under the FTC Franchise Rule (16 CFR Part 436), total estimated initial investment for a Five Guys franchise runs $222,000–$1,040,000. Leasehold improvements and equipment dominate the investment range:
Franchise fee: $25,000
Leasehold improvements and construction: $80,000–$500,000
Miscellaneous and professional fees: $10,000–$25,000
2 Ongoing fees
Five Guys charges a 6% royalty on net sales plus a 1% advertising fund contribution, for a combined 7% of net sales. The 1% advertising fund is among the lowest in premium fast-casual, reflecting Five Guys' historical reliance on word-of-mouth and quality reputation rather than heavy national advertising spend. The brand's cult following and consistent media coverage of its food quality generate organic awareness that reduces the need for paid acquisition.
3 Financing options
Five Guys is listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan processing. Common financing paths:
SBA 7(a) loan: Covers franchise fee, leasehold improvements, equipment, initial inventory, and working capital. The $222K–$1.04M range spans both the standard 7(a) and SBA 7(a) large loan thresholds.
SBA 504 loan: For franchisees purchasing real estate or undertaking major construction, SBA 504 provides long-term fixed-rate financing.
Equipment financing: Grills, commercial fry equipment, and refrigeration can be financed separately — preserving SBA loan capacity for leasehold improvements.
Working capital line of credit: Supports fresh ingredient ordering (beef, produce) and covers fixed costs during the new location ramp-up.
ROBS (Rollover for Business Startups): Franchisees with 401(k) or IRA balances can deploy retirement funds tax-free via ROBS as equity for SBA financing.
4 Realistic ROI timeline
Premium fast-casual burger concepts with strong brand recognition typically target break-even within 24–42 months. Five Guys' higher average check (relative to value-tier QSR) supports stronger unit-level revenue, but fresh-ingredient costs and premium labor standards compress margins. Locations in high-traffic mall, airport, or urban inline settings tend to reach stabilized volume faster than suburban builds.
5 Who's a good fit
Five Guys targets multi-unit QSR operators with demonstrated experience managing fresh-ingredient restaurant operations. The net worth requirement of $1.5M+ and liquid capital of $500K+ reflect the multi-unit expectation and the premium food quality standards the brand maintains. Operators comfortable with fresh supply chain management and premium labor standards are best positioned for Five Guys.
6 What lenders look for in a Five Guys franchise application
Five Guys is on the SBA Franchise Directory and remains privately held by the Murrell family — development is selective. The $222K–$1.04M range is accessible relative to other premium burger brands, but lender underwriting for Five Guys is shaped by fresh-ingredient cost management and multi-unit experience requirements. Key underwriting factors:
Debt service coverage ratio (DSCR): SBA guidelines require a minimum 1.15× DSCR; most lenders require 1.25×+ on QSR franchise loans. Five Guys' higher average check (vs. value-tier QSR) supports stronger per-transaction revenue, but lenders will closely examine fresh-ingredient cost structure and labor costs when evaluating projected DSCR.
Equity injection (10–20%): SBA 7(a) requires minimum 10% equity injection. Five Guys' $222K starting investment means 10% injection is as low as $22K in absolute terms. Higher-investment end-cap or freestanding builds at $800K–$1.04M require $80K–$160K+ equity injection at the 10–15% range.
Fresh-ingredient supply chain risk: Five Guys uses fresh, never-frozen beef and fresh-cut produce daily. Lenders experienced in restaurant lending will flag protein cost volatility (beef is commodity-priced) as a cash flow risk factor — operators should be prepared to discuss how they manage food cost relative to projected DSCR.
Multi-unit QSR operating experience: Five Guys requires demonstrated multi-unit QSR management experience. Lenders treat this as a proxy for execution risk — applicants with prior multi-unit franchisee track records in food service present a materially lower risk profile than first-time restaurant operators.
Compact footprint collateral: Five Guys' no-frills build (1,500–2,000 sq ft, inline or end-cap) keeps leasehold improvements predictable. The simple aesthetic means lower build-out cost variability than premium-build competitors. Equipment (grills, fryers, exhaust) constitutes a discrete, financeable asset class with documented useful life.
7 Apply for franchise financing
ClearValue Lending works with premium burger and QSR franchise operators on SBA, equipment, and working capital financing. Start at small business financing or apply for franchise financing at Find my match. Your file routes to the funding partners best matched to your file.
Sources
Five Guys is listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan eligibility. — SBA Franchise Directory
SBA 7(a) loans finance franchise startups including leasehold improvements, equipment, and working capital for fast-casual food concepts. — SBA 7(a) Loan Program
All franchise cost and fee disclosures are governed by the FTC Franchise Rule requiring a Franchise Disclosure Document (FDD) be delivered at least 14 days before signing. — FTC Franchise Rule — 16 CFR Part 436
Qualifying restaurant equipment placed in service during the tax year may be immediately expensed under IRS Section 179. — IRS Publication 946
Frequently asked questions
How much does a Five Guys franchise cost in 2026?
Per the current FDD, total estimated initial investment runs $222,000–$1,040,000. Leasehold improvements and equipment are the largest drivers. The wide range reflects inline conversions at the low end versus new free-standing or end-cap builds at the high end.
Why is Five Guys' advertising fund only 1%?
Five Guys has historically built brand awareness through word-of-mouth and food quality reputation rather than heavy national advertising. The 1% ad fund is among the lowest in premium fast-casual, reflecting that approach.
What is the Five Guys royalty rate?
Five Guys charges a 6% royalty on net sales plus a 1% advertising fund contribution, for a combined 7% of net sales.
Can I finance a Five Guys franchise with an SBA loan?
Yes. Five Guys is on the SBA Franchise Directory. SBA 7(a) covers franchise fee, leasehold improvements, equipment, and working capital. Equipment financing can supplement for grills and fry equipment.
Does Five Guys accept first-time franchise operators?
Five Guys typically targets multi-unit QSR operators with demonstrated fresh-ingredient restaurant experience. Single-unit applications are considered selectively. The $1.5M+ net worth and $500K+ liquid capital requirements reflect the multi-unit expectation.
What DSCR do lenders require for a Five Guys franchise SBA loan?
SBA guidelines set a minimum DSCR of 1.15×; most lenders require 1.25×+ on fast-casual franchise loans. Five Guys' fresh-ingredient cost structure (beef, produce, peanut oil) introduces food-cost variability — lenders will model DSCR sensitivity to commodity price swings and will want to see comparable-store data from FDD Item 19. Source: SBA Standard Operating Procedure 50 10 7 (sba.gov).
How much equity injection is required for a Five Guys franchise SBA loan?
SBA 7(a) requires a minimum 10% equity injection. Five Guys' $222K investment floor means a 10% injection is as low as $22K in absolute terms. For higher-investment builds approaching $1M, expect 15–20% equity injection requirements from lenders. Five Guys' $500K+ liquid capital requirement reflects the brand's expectation of multi-unit operators with substantial personal capital depth. Source: SBA Standard Operating Procedure 50 10 7 (sba.gov).
Summary:
Five Guys franchise startup costs run $222K–$1.04M for a premium fast-casual burger concept known for fresh, never-frozen beef and hand-cut fries. With 1,700+ locations globally, Five Guys is one of the most recognized premium burger franchises in the world.
This article is for educational purposes and is not financial, legal, or tax advice. Rates,
fees, qualification requirements, and product availability are illustrative ranges that vary
by lender, market conditions, and individual business profile. ClearValue Lending is a
funding platform; all financing is subject to lender partner approval and terms. Always read
your contract end-to-end and verify specific numbers before signing.
