Five Guys Franchise

Overview

Become a franchisee with Five Guys Franchisor, LLC, and operate a Five Guys® fast-casual restaurant, specializing in fresh-made burgers and fries. This opportunity allows you to join a reputable brand with a proven business model and significant market presence.

Initial Investment

The total investment necessary to establish a single Five Guys® restaurant ranges from $256,200 to $591,250. This includes:

• Franchise Fee: $25,000 (non-refundable, due upon signing the Franchise Agreement).
• Development Fee: $50,000 per restaurant (or $125,000 for locations in Alaska, Hawaii, or Puerto Rico, due upon signing the Development Agreement).

Investment Breakdown

Here is a detailed breakdown of the initial investment required:

• Leasehold Improvements: $100,000 to $300,000
• Lease Payments and Other Rental Expenses: $7,500 to $20,000 for the first 3 months
• Equipment: $55,000 to $105,000
• Signage: $6,500 to $20,000
• Initial Inventory: $10,000 to $15,000
• Architectural/Engineering Fees: $7,000 to $25,000
• Electronic Cash Register System: $15,000 to $25,000
• Facsimile Machine: $350 to $500
• Travel, Lodging, and Meals for Initial Training: $100 to $5,000
• Business Supplies: $4,000 to $8,500
• Business Licenses, Permits, and Utility Deposits: $5,000 to $15,000
• Insurance Deposits and Premiums: $750 to $1,250
• Additional Funds for the First 3 Months: $20,000 to $25,000

Ongoing Fees

• Royalty Fee: 6% of gross sales (8% in Alaska, Hawaii, or Puerto Rico)
• Creative Fund Contribution: Up to 2% of gross sales
• Local Advertising: Not less than 2% of gross sales annually
• Cooperative Advertising: Maximum of 1.5% of gross sales
• Additional Training Fee: $1,500 per person (for training beyond the initial training of specified personnel)

Key Takeaways

• Comprehensive Support: Five Guys provides extensive training and support, including site evaluation, restaurant design, and ongoing operational assistance.
• Brand Strength: Leveraging the strong Five Guys brand known for quality burgers and fries.
• Market Potential: With a competitive edge in the fast-casual dining market, Five Guys offers significant growth opportunities.
• Flexibility: Opportunity to develop multiple restaurants under a single Development Agreement.

For detailed financial performance representations and other essential information, please refer to Items 19 and 20 of the Franchise Disclosure Document (FDD).

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