Five Guys Franchise FDD, Profits & Costs
Five Guys, founded in 1986 by Jerry Murrell and his family, is a renowned fast-food franchise known for its high-quality burgers and fries. Starting as a small carry-out joint in Arlington, Virginia, the brand began franchising in 2002, leading to rapid expansion.
Now headquartered in Alexandria, Virginia, Five Guys is celebrated for its simple yet customizable menu, featuring burgers, kosher-style hot dogs, sandwiches, and milkshakes.
A key differentiator is their commitment to freshness. They do not have any no freezers, only coolers, ensuring all ingredients are fresh and made to order.
Initial Investment
How much does it cost to start a Five Guys franchise? It costs on average between $256,000 – $591,000 to start a Five Guys franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $25,000 |
| Leasehold Improvements | $100,000 – $300,000 |
| Lease Payments and other rental expenses | $7,500 – $20,000 |
| Equipment | $55,000 – $105,000 |
| Signage | $6,500 – $20,000 |
| Initial Inventory | $10,000 – $15,000 |
| Architectural/ Engineering | $7,000 – $25,000 |
| Electronic Cash Register System with Modem | $15,000 – $25,000 |
| Facsimile Machine | $350 – $500 |
| Travel, lodging and meals for initial training | $100 – $5,000 |
| Business Supplies | $4,000 – $8,500 |
| Business licenses, permits, utility deposits, etc. | $5,000 – $15,000 |
| Delivery and catering expenses | $0 – $1,000 |
| Insurance deposits and premiums | $750 – $1,250 |
| Additional Funds for first 3 months | $20,000 – $25,000 |
| Total | $256,200 – $591,250 |
Five Guys Franchise Disclosure Document
Frequently Asked Questions
What funding options are available for a Five Guys franchise?
Most franchise buyers in Five Guys’s investment range finance their unit through an SBA 7(a) loan, with some multi-unit operators using SBA 504 loans for real estate. Buyers with rollable retirement funds sometimes use a ROBS structure to reduce debt service. See SharpSheets’ financial model hub for funding guidance.
How long does it take to pay back a Five Guys franchise investment?
Payback periods for franchises in Five Guys’s category typically run 3-7 years, depending on investment level, location performance, and financing structure. Actual payback varies significantly by unit performance and debt service obligations.
Who owns Five Guys?
Five Guys is owned by the Murrell family. The business was founded in 1986 by Jerry Murrell, his wife Janie, and their sons. The name “Five Guys” refers to Jerry and his four sons, who were involved in the business from its inception.
Over time, a fifth son was born, and all five brothers (Jim, Matt, Chad, Ben, and Tyler) now play active roles in running the company.
SharpSheets Editorial Team | sharpsheets.io | Last Updated: June 2026
→ How much does a Five Guys franchise owner make? Full income breakdown, data tables, and payback analysis.
Disclaimer
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Research Five Guys franchise data: For the full FDD cost breakdown, investment tables, and Item 19 disclosures, visit FranchisePayback.com → Five Guys FDD Review.
