How to Finance a Five Guys Franchise in 2026

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.

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

Five Guys has grown from a single Arlington, Virginia location to over 1,700 U.S. restaurants. Its premium fast-casual positioning — fresh beef, hand-cut fries, made-to-order burgers — commands higher average unit volumes than most comparably-priced QSR brands. This guide covers the financing mechanics. For a startup cost breakdown, see the companion cost-to-start guide.

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.

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 + 2.75% 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

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.

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.

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.

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.

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.

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 one matched lender in our network. 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 FTC Franchise Rule requires franchisors to provide a Franchise Disclosure Document (FDD) with Item 7 (estimated initial investment) and Item 5 (fees). — FTC Franchise Rule — Buying a Franchise: A Consumer Guide
• FDIC data shows SBA-guaranteed loans are the dominant vehicle for fast-casual franchise acquisitions where borrower equity meets the 10–25% injection threshold. — FDIC — Financial Institution Letters

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 7):

• 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.

Deal structuring note

Five Guys' fresh-beef COGS volatility is the unique underwriting risk — lenders with QSR franchise experience handle this better than generalist banks. The 7.5% combined fee load is competitive for the premium burger category, improving DSCR position versus higher-royalty peers. Document 3–6 months of operating cash reserve as a standard lender condition for new builds.

Frequently asked questions