Five Guys

Five Guys began in 1986, when Jerry and Janie Murrell used their sons’ college fund to open a burger restaurant in Arlington, Virginia. The name referred to Jerry and his four eldest sons, Jim, Matt, Chad, and Ben. After Tyler was born two years later, all five sons became involved in the business. Matt and Jim visit restaurants across the United States to support consistency. Chad oversees training, Ben selects franchisees, and Tyler manages bakery operations. The company remains family owned and operated without a single CEO directing the business. Five Guys Holdings was established in 2007, and Five Guys Operations was formally founded in 2012. The headquarters is now in Alexandria, Virginia, after previously being based in Lorton, Virginia. The brand has more than 1,900 restaurants in 29 countries. The fast casual market was valued at USD 190.51 billion in 2023 and is projected to reach USD 451.04 billion by 2031, with a Compound Annual Growth Rate of 11.56%. Five Guys centers its offering on quality ingredients and a customizable menu, including fresh, never frozen beef and hand cut fries.

Five Guys operates in the fast casual restaurant market, which was valued at USD 190.51 billion in 2023 and estimated at USD 209.77 billion in 2024. The market is projected to reach USD 451.04 billion by 2031, reflecting an 11.56% Compound Annual Growth Rate from 2024 through 2031. Burger and sandwich restaurants held 29.53% of the market in 2023. Mobile ordering and delivery support consumer demand for convenience, while interest in fresher and higher quality ingredients fits Five Guys’ use of never frozen beef and hand cut fries. Point of sale systems, self order kiosks, and mobile applications are also shaping restaurant operations and customer service. The franchised portion of the market is expected to grow at an 11.81% Compound Annual Growth Rate. North America held 33.32% of the global market in 2023, with a value of USD 63.48 billion. Industry revenue declined in 2020 during the COVID 19 pandemic, but Five Guys and the broader U.S. fast food industry are projected to grow through 2026 as the economy recovers and consumer demand continues. Five Guys’ made to order model places it within a growing burger and restaurant category.

The initial franchise fee is $25,000, although some sources report a fee of $50,000 to $125,000 based on location factors. Qualifying U.S. military veterans receive a $10,000 discount on the fee for their first restaurant. Estimated total investment ranges from $306,200 to $716,250, while reports from January 2026 place the range at $977,850 to $1,375,750. Costs vary with the restaurant format, location, and whether the property is leased or purchased. Leasehold improvements are estimated at $100,000 to $300,000. Lease payments and other rental costs range from $7,500 to $20,000, equipment from $55,000 to $105,000, signage from $6,500 to $20,000, and initial inventory from $10,000 to $15,000. Architectural and engineering fees are estimated at $7,000 to $25,000. An electronic cash register system with modem costs $15,000 to $25,000. Business supplies require $4,000 to $8,500, licenses, permits, and utility deposits require $5,000 to $15,000, and insurance deposits and premiums require $750 to $1,250. Franchisees should reserve $20,000 to $25,000 for the first three months of operations. Required financial qualifications include at least $250,000 in liquid assets and a net worth of $500,000 to $1.5 million. The royalty is 6% of gross sales, increasing to 8% in Alaska, Hawaii, and Puerto Rico. Cooperative advertising contributions can count toward that requirement. The initial term is 10 years, with additional consecutive 10 year renewal terms available if requirements are met.

Five Guys expects franchise operations to have active, hands on management. Lucas Mitchell grew from manager to owner of 13 locations, illustrating the value the brand places on physical presence and knowledge of basic restaurant duties. The operating model uses no freezers, only coolers, so ingredients can be prepared fresh and to order. Beef is never frozen, fries are hand cut and cooked in pure peanut oil, and potatoes are displayed with information about their specific farms. New franchisees, operators, and managers complete three weeks of in store training at a certified training restaurant and one week of classroom instruction at the home office in Alexandria, Virginia. The program focuses on operational excellence the Five Guys way. Initial training generally lasts about two weeks, though as many as six weeks may be needed for full proficiency. Additional employees can be trained for $1,500 per person. Corporate support includes secret shoppers who visit locations twice each week to review brand standards and customer experience. The company also manages its supply chain to maintain consistent ingredient quality. All U.S. and Canada opportunities were sold out as of early 2026. Five Guys is accepting inquiries for international markets, including Europe, the Middle East, and the APAC region. A franchisee’s area of responsibility may be limited to the restaurant’s physical space in a shopping mall, strip mall, university campus, or hospital, so an exclusive territory may not be available.

Buyers should request information from the franchisor and speak directly with current franchisees about unit economics. Five Guys was identified as the fastest growing fast food chain in the United States after sales increased 32.8% from 2010 to 2011. In 2022, the company bought 106 locations from Encore Restaurants, its largest U.S. franchisee, for approximately $200 million. The franchise fleet declined from 979 locations at the end of 2022 to 924 heading into 2025, while corporate owned locations increased from 597 to 613.

Five Guys began franchising in early 2003 and sold options for more than 300 units in less than 18 months. By 2004, more than 300 units were under development across the Northeast. The system passed 1,000 locations by 2012 across the United States and Canada. By 2016, more than 1,700 restaurants were open worldwide, with another 1,300 under development. More recent reports place the system above 1,900 restaurants worldwide, while other sources cite more than 1,800 locations across North America, Europe, Asia, the Middle East, and Australia, with another 1,500 units in development. The reported total exceeded 1,950 locations as of January 2026. International markets added 450 locations in 2024 and recorded 10% unit growth, while the U.S. system approached 1,500 restaurants. The 2022 acquisition of 106 Encore Restaurants locations for approximately $200 million increased corporate control over U.S. operations. Restaurant Business named Five Guys the 2025 Global Restaurant Leader of the Year. The brand’s customer base is supported by its quality focus, fresh ingredients, straightforward menu, and reported cult like following. Milkshakes became a permanent menu item in 2014. Premium pricing reflects the ingredient offering and targets customers willing to pay for a higher quality burger experience. The company reportedly spends five times as much on secret shoppers visiting restaurants twice each week as it does on large scale advertising.

A typical Five Guys candidate is an experienced multi unit restaurant operator with knowledge of the fast casual segment. The financial profile calls for at least $250,000 in liquid assets and a net worth of $500,000 to $1.5 million. The hands on operating model may suit an owner operator or an investor with an engaged management team. U.S. and Canada territories were sold out as of early 2026, so current expansion efforts are focused on Europe, the Middle East, and the APAC region. The United Kingdom has more than 170 restaurants and plans to add 140 outlets, reaching 300 locations. Germany opened its first Five Guys restaurants in 2017, South Korea has had the brand since 2023, and Australia since 2021. In 2024, joint venture restaurants opened 28 locations across the United Kingdom and France.