Five Guys Burger Franchise Cost For Sale Price

 

Do you wish to be an owner of a burger joint? Consider investing in a Five Guys Burger franchise. It is an all-American restaurant that takes utmost pleasure in serving a menu enriched with fresh-cut fries and fresh ground beef. 

The food offered by the restaurant and its franchises has been officially recognised by various award-giving organizations, such as Zagat Poll’s recent “Top Burger Award”, which is a poll for choosing the best fast food restaurant items in the US. 

A person will indubitably possess a winning formula when he will combine the excellent range of products offered by the franchise with an outstanding company approach. 

 

How much does a Five Guys Burger franchise cost?

For the opening, a 5 Guys Burger franchise fee is $25,000 and further requires an initial cost and investment of an amount somewhere between $306,200 to $641,250. 

Five Guys Burger Startup and On-going Franchise Costs
Five Guys Burger Franchise Fee	$ 25,000
Five Guys Burger Franchise Cost	$306,200 – $641,250
Five Guys Royalty Fee	6% of gross sales
Advertising Fee	2% of gross sales
Term of Agreement	10 years
Is franchise term renewable?	Yes

 

How much do Five Guys Burger franchise owners make?

One industry report estimates that Five Guys franchise owners make an average of $200,000 in annual profit. This estimate is based on the assumption that each franchise location generates an average of $1.4 million in sales per year.

While $700,000 is a good chunk of change, it’s important to remember that this is just an estimate. Franchise owners’ actual earnings will depend on a number of factors, including the number of locations they own, the location of their stores, and the overall performance of the Five Guys brand.

The franchise fails to offer Item 19 in the Franchise Disclosure Agreement. 

Let us estimate the franchise profit on AUV of  $1.36 million.

 

Initial investment (midpoint)	%Profit margin of median franchise sales	Estimated profits	Time to recoup the investment
$473,725	10%	$136,344	6 years
15%	$204,516	5 years
20%	$272,688	4 years

 

What is Five Guys Burger franchise profit?

Five Guys Burger franchise owners can expect to make about $1.18 million annually in revenue and a profit margin of 15 to 20% and make $204,516 to $272,688 in profit every year. This profit can be expected after 2 years of operations of the 5 guys’ franchises.

Five Guys Burger Franchise Application and Requirements

The total minimum investment required by a franchisee in order to be considered eligible for a franchise of 5 Guy burgers ranges somewhere between $152,600 and $360,300. 

Along with this, it needs an initial franchising fee of $25,000 coupled with an agreement term of 20 years.

 

 

What are Five Guys Burger franchise owner reviews?

Many franchise owners cite the company’s strong brand recognition and solid customer base as major advantages. The company’s simple menu is also a plus, as it makes training new employees relatively easy.

On the downside, some franchise owners complain about the company’s high royalty fees. Others say that the company is too rigid when it comes to things like menu changes and decorating the restaurant.

Every restaurant tends to range somewhere between 2000 to 3000 square feet in area and is known to offer a wide menu selection featuring items made as per the specified procedures and recipes of the franchisor. The franchise is overall a win-win if operated effectively. 

 

https://youtu.be/YzeqP7FHT-s

 

 

 

What is the 5 Guys Burger?

Five Guys is a casual dining restaurant specialising in the sale of french fries, hamburgers, and other accompaniments as per the ingredients and recipes of the franchisor. 

Five Guys restaurants are located in various retail shopping centers and urban locations which are easily acceptable to the franchisor. However, he might consider other locations such as sports arenas, university campuses, airports, captive market spaces, train stations, or other captive market spaces based on the case. 

Five Guys is known for its fresh, made-to-order burgers and fries. The company has a strong commitment to giving back to the communities it serves.

 

Is Five Guys a Franchise Opportunity?

Yes, Five Guys Burger is a franchising opportunity! They have a very strong franchise model that has been successful for many years. The company is continuing to grow and expand, so there are many opportunities for new franchisees to get involved.

The Five Guys franchising opportunity offers a lot of advantages to potential franchisees. First, the company has a strong brand that is well-known and respected. This can give you a leg up on the competition when you are trying to attract customers.

Facts About Five Guys Burger 

• Five Guys does not have any freezers, they only have coolers to store food. This essentially means that they offer fresh burgers which are cooked daily. 

• A person can order his burger his way with a choice of more than 15 toppings which can be added for free. 

• Their crispy french fries are fried in peanut oil and are served in large quantities. 

• Several famous people have proclaimed their love, including former President Barack Obama, for the food offered by Five Guys. 

5 Guys Burger Franchise Review and Information
Industry Type	Food Franchise Opportunities
Sub Category	Burger Franchise Opportunities
Year Established	1986
Company Name	Five Guys Enterprises LLC
Founder/Management Head	Jerry and Janie Murrell
Franchising Started	2002
Franchise Expansion Plan	The United States and                Canada
Number of Units	1600
Number of Franchise Units	More than 1400 franchise units
Social Media Handles	Facebook
	Twitter
	Youtube
	Instagram
Company Office location	Lorton, Virginia

 

5 Guys Burger Training to Franchises

The general manager, an assistant manager, and an operating principal are required to attend and complete an initial training program to the satisfaction of the franchisor. Such training is conducted at the corporate headquarters of the franchisor or any other location designated by him. 

The duration of the program generally ranges from about 6 weeks. 

A franchisee might also get their additional personnel trained by the designee for the restaurant or the franchisor; the charge for such training is $1,500 per person. 

 

How is 5 Guys Burger Territory Granted to Franchises

The Franchise Agreement is known to grant a franchisee a right to operate a restaurant at a particular location selected by him within the assigned area, approved by the franchisor. 

The franchisor will further determine the key area of responsibility before the signing of the Franchise Agreement based on several economic and market factors. During this term, the franchisor will not establish a restaurant within the primary area of responsibility, nor will he authorize any other person or entity to do the same. 

In a situation where the primary area of responsibility is limited to a specific physical space occupied by a franchise, franchisees will not receive any exclusive territory. 

 

What is the 5 Guys Burger Franchising term of Agreement and Renewal?

The initial franchise term generally goes for about 10 years from the date of signing of the Franchise Agreement. The agreement might be renewed at the option of the franchise for 10 years upon meeting all the requirements. 

Do the 5 Guys provide Financial Assistance to franchises?

The franchisor is not known to offer financial assistance to franchisees, whether directly or indirectly. Further, the franchisor also fails to guarantee a franchisee’s leases, obligations, or leases. You can have a look at franchise loans options on the Resources page.

Pros & Cons of owning 5 Guys Burger franchise

1. Pros

• Commitment to Quality
• Reputation for delicious food
• Thorough training

2. Cons

• Significant involvement 
• Expensive burgers
• Standard locations
• No financing
• No major delivery services

 

https://youtu.be/Gcs7vCFJ414

 

 

Franchise Deck Analysis and Overview

Five Guys Burgers and Fries is a fast-food burger chain with over 1,500 locations in the United States and Canada. The company was founded in 1986 by Jerry Murrell and his brothers. 

Five Guys Burgers and Fries is a fast-food restaurant chain focused on burgers, hot dogs, and French fries. The company was founded in 1986 in Arlington, Virginia, and as of 2018, there were 1,500 locations nationwide. Five Guys is known for its made-to-order burgers and sandwiches, as well as its large portions and unlimited toppings. The chain has a loyal following of fans who appreciate the no-frills atmosphere and simple menu.

In recent years, Five Guys has been expanding its international presence and as of 2018, there were over 300 locations outside of the United States. The company plans to continue its expansion in the coming years and is looking to open locations in Asia, Europe, and South America.

Five Guys has been consistently ranked as one of the best burger chains in the United States.

With a franchise profit of $150 to 200K, you can expect to recoup your investment within 4 to 5 years including the initial gestation period of 6 to 18 months depending on location to location.

 

Are the Five Guys Burger Franchise worth the Cost and profit?

Five Guys Burger owners can expect to make about $1.18 million annually with their revenue. This amount might be less when compared to its competitors, but its initial investment tends to make it an effective entry point for several franchisees. 

Five Guys requires a comparatively smaller initial mid-point investment of $425,000 compared to its competitors like the Mcdonald’s franchise and Whataburger franchise.

With the investment and skills of the franchisee, the franchise is indeed worth the franchise cost if handled successfully in the long run. 

The Franchise Deck rating for the Five Guys Burger franchising is 4.1/5.0.

 

Conclusion: Invest in a 5 Guys franchise today

Five Guys Franchise is a leading fast food chain known for customer experience and commitment to quality. Perfect customer experience and tasty meals are essential elements of the franchise. The franchise embraces digital advertising and spends on secret shoppers, visiting locations more than once a week to ensure the upholding of the brand image. Their menu is simple but the best. The two-week-long training process for franchisees helps them incorporate all the essential qualities to succeed and make high profits in the long run. 

Entrepreneurs who want to open a franchise in the burger  franchise opportunities category can look at 

1. Fat Burger Franchise 
2. Burger King Franchise
3. Wendy’s Franchise 
4. Burger Village Franchise
5. WhataBurger Franchise
6. Fat Burger Franchise
7.  BurgerFi Franchise
8. Smashburger Franchise
9. Wayback burger franchise

Comment on your favorite or sort-after franchise opportunity on which you want me to write.

 

Frequently Asked Questions (FAQs)

Is the Five Guys Burger franchise profitable?

The company is headquartered in Lorton, Virginia. As of 2018, there are 1,500 locations in the United States and Canada. The company has been profitable since its inception. In 2017, Five Guys had sales of $1.6 billion. The company is privately owned and does not release detailed financial information. However, based on sales figures and industry trends, it is safe to say that the Five Guys franchising is indeed beneficial. A franchise owner can earn more or about $1.18 million annually according to QSR. 

Can you make money owning a 5 Guys Burger franchise?

Yes, a person can easily make money by owning a franchises of 5 Guys Burger. If you’re considering owning 5 Guys Burger and Fries franchises, you’re probably wondering if you can make money doing so. The answer is yes, you can make money owning a 5 Guys, but it’s important to understand how the franchising model works before you make any decisions.

 Is a 5 Guys Burger a franchise?

5 Guys franchises is a fast-food joint offering lucrative opportunities to the franchises for people from all over the world.

How do the Five Guys Burger franchises make money?

The Five Guys is a chain of fast-casual restaurants that primarily sell hamburgers, hot dogs, and french fries. The company makes money through the sale of these food items, as well as through the sale of franchise fees and royalties.