Five Guys total investment runs $306K–$934K depending on location and format. SBA 7(a) is the primary financing vehicle. Here's how lenders structure the deal.
Five Guys financing snapshot
SBA Franchise Directory
Listed
Loan programs typically used
SBA 7(a), SBA 504, Equipment financing
Total investment
$306,000–$934,000
Minimum equity injection
10%–20%
Typical timeline to funding
60–90 days
Source: Five Guys Franchise Disclosure Document (FDD) + published franchisee financing guidance · as of 2026-07-17. Figures vary by lender, market, and individual borrower profile; verify current terms with your funding partner before applying.
Key takeaways
Total investment: $306K–$934K depending on location, size, and build-out type
Five Guys is on the SBA Franchise Directory — SBA 7(a) covers the financed portion up to $5M
Premium fast-casual positioning means higher build-out costs per square foot than most QSR pizza chains
SBA 504 applies when the franchisee acquires real estate as owner-occupied commercial property
Equipment financing can be layered for grills, refrigeration, fresh-prep equipment, and POS systems
Typical lender timeline: 60–90 days from completed application to funding
1 Five Guys total investment + what lenders look at
Total estimated initial investment per the current FDD runs $306K–$934K depending on location, square footage, and new vs. acquired unit. Lenders evaluate the following when underwriting a Five Guys franchise deal:
Equity injection documentation: SBA requires a minimum 10–20% of total project cost in non-borrowed liquid cash.
Operating experience: Five Guys values multi-unit restaurant operators; prior QSR or fast-casual experience strengthens the lender package.
Location cash flow (existing unit): Trailing 12-month revenue; DSCR of 1.25x or better for acquisitions.
Build-out costs: Five Guys' fresh-prep model requires specific kitchen configurations — leasehold improvement costs vary significantly by market.
Personal credit: 680+ personal FICO is a common SBA lender threshold for franchise deals in this investment range.
2 SBA 7(a) for Five Guys franchises
The SBA 7(a) loan program is the primary financing vehicle for Five Guys franchise acquisitions. Five Guys' listing on the SBA Franchise Directory allows lenders to bypass independent franchise agreement review — shortening timelines by 2–4 weeks. Key parameters:
Maximum loan amount: $5M — covers most single-unit Five Guys deals with room for multi-unit packages
Terms: Up to 10 years for equipment and working capital; up to 25 years when real estate is included
Rate: Prime + 3.0% for loans over $350K (variable); fixed-rate options vary by lender
Use of proceeds: Acquisition price, leasehold improvements, kitchen equipment, working capital reserve
What it does NOT cover: The equity injection — that must come from borrower's own liquid assets
3 SBA 504 for real estate and build-out
The SBA 504 program applies when a Five Guys franchisee is acquiring freestanding real estate as owner-occupied commercial property. Structure: 50% conventional bank loan + 40% SBA 504 debenture (long-term fixed rate) + 10% borrower equity. For multi-unit operators acquiring standalone buildings in high-traffic areas, 504 can reduce the blended financing cost versus a 7(a) alone.
4 Equipment financing for Five Guys
Commercial flat-top grills, refrigeration and walk-in coolers, fresh-cut fry systems, and POS technology can be financed separately via equipment loans or leases — layered on top of the primary SBA 7(a) loan. Equipment loans typically run 3–7 year terms, collateralized by the equipment itself. Five Guys' fresh-prep model means higher equipment density than many QSR concepts, making equipment financing particularly useful to preserve working capital.
5 Franchisor financing programs
Five Guys does not operate a direct in-house lending program for franchisees. The company refers franchisee candidates to lenders with QSR franchise experience. During development campaigns, Five Guys has offered co-investment and territory development agreements to qualified multi-unit operators — these are operational partnerships, not direct financing products. The actual debt financing is market-rate from third-party lenders.
6 Down payment and liquidity requirements
Five Guys discloses franchisee financial requirements in the current FDD — review Item 5 and Item 7 with your lender before approaching any financing. As a general benchmark, franchisees should plan for a 10–20% SBA equity injection on the financed portion plus working capital reserves. On a $600K deal, that is $60K–$120K minimum injection from liquid assets. Five Guys tends to seek operators with multi-unit potential, which can mean stricter liquidity expectations than single-unit franchisors.
7 Timeline to funding
1
Pre-qualification
Lender reviews financial statements, Five Guys approval letter, and FDD. 1–2 weeks.
2
SBA package
Full SBA application: SBA Form 413, 3 years tax returns, business plan, site lease or purchase agreement. 2–3 weeks.
3
SBA approval
SBA review and conditional commitment. 3–6 weeks depending on lender's Preferred Lender (PLP) status.
4
Closing and funding
Title, legal, and closing. 2–3 weeks post-commitment. Total: 60–90 days from complete application.
8 Apply with ClearValue Lending
ClearValue Lending works with franchise operators at every stage — from first-unit acquisition to multi-unit expansion financing. Apply at Find my match. Your file routes to the funding partners in our network best matched to your file. Related: SBA 7(a) loans explained · SBA 504 loan explained.
Sources
Five Guys is listed on the SBA Franchise Directory, making it eligible for expedited SBA 7(a) franchisor review. — SBA Franchise Directory
SBA 7(a) loans provide up to $5M for eligible franchise startup and acquisition costs, with terms up to 25 years when real estate is included. — SBA 7(a) Loan Program
SBA 504 loans finance owner-occupied commercial real estate with a long-term fixed-rate debenture — applicable to franchise real estate acquisitions. — SBA 504 Loan Program
The Fed Small Business Credit Survey finds bank loans and SBA-guaranteed financing remain the primary credit sources fast-casual small employer firms use to fund startup and build-out costs at this investment tier. — Federal Reserve — Small Business Credit Survey
9 What lenders look for in a Five Guys franchise application
Here are the five factors SBA lenders evaluate when underwriting a Five Guys franchise deal (per SBA SOP 50 10 8):
Equity injection: SBA requires 10–20% of project cost in non-borrowed liquid cash. Five Guys' $306K–$955K range spans SBA Express eligibility for smaller inline builds to full SBA 7(a) for larger formats. On a $600K Five Guys build, the SBA injection is $60K–$120K in documented non-borrowed funds.
DSCR and fresh-beef COGS stress test: Five Guys' all-fresh, never-frozen beef commitment means COGS fluctuates with beef commodity prices. Lenders apply a commodity-stress DSCR test — modeling a 15–20% beef price increase against projected revenue. The 7.5% combined fee load (6% royalty + 1.5% ad fund) is below average for premium burger QSR, which helps the DSCR position.
Personal credit and operating experience: Most SBA lenders require 680+ personal FICO. Five Guys strongly prefers franchisees with prior restaurant or food service management experience. Hands-on operational involvement is expected — absentee ownership is not the model.
Equipment collateral and kitchen build-out: Five Guys' open-kitchen format requires flat-top grills, fry equipment, and fresh produce refrigeration systems specified by the franchisor. Equipment carries a 30–50% advance rate as collateral. Equipment loans layered on SBA 7(a) are a common structure for new builds.
Lease quality and site format: Five Guys operates in inline, end-cap, and freestanding formats. Lease quality — term length matching loan amortization, assignment provisions — is a key underwriting signal. Freestanding sites above $700K may benefit from SBA 504 when real estate is acquired as owner-occupied commercial property.
Frequently asked questions
Can I use an SBA loan to finance a Five Guys franchise?
Yes. Five Guys is on the SBA Franchise Directory, which allows lenders to skip independent franchise agreement review. SBA 7(a) can finance the portion of the deal above your equity injection, up to $5M.
How much cash do I need to open a Five Guys franchise?
Review Item 7 of the current FDD for the most current investment range ($306K–$934K) and Item 5 for fees. Plan for a 10–20% SBA equity injection on the financed portion plus working capital reserves. Five Guys' multi-unit focus may mean stricter liquidity expectations than single-unit franchisors.
Does Five Guys offer in-house financing for franchisees?
Five Guys does not operate a direct lending program. The company refers candidates to lenders with QSR franchise experience. Development agreements and co-investment structures exist for qualified multi-unit operators, but the actual debt is market-rate from third-party lenders.
What credit score do I need for a Five Guys franchise loan?
Most SBA lenders require 680+ personal FICO for franchise deals. Five Guys' investment range ($306K–$934K) places most deals well within standard SBA 7(a) parameters. Compensating factors — restaurant operating history, high liquidity — can sometimes offset a lower score.
How long does financing take for a Five Guys franchise?
Expect 60–90 days from a completed SBA application to funding. SBA Preferred Lenders (PLPs) can issue conditional commitments in 3–4 weeks. Coordinate the Five Guys franchisee approval process in parallel to avoid sequencing delays.
Summary:
Five Guys total investment runs $306K–$934K depending on location and format. SBA 7(a) is the primary financing vehicle. Here's how lenders structure the deal.
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.
