Brand Shoutouts
$3.6B in system sales. Named 2025 Global Restaurant Leader of the Year. And quietly buying back their own franchisees for $200 million while domestic AUV falls 10.6%. That tension is worth understanding before you write a check. 29 sources. No spin.
By Justin K. Sellers · 25 min read · March 4, 2026
The same philosophy that built Five Guys is the reason a burger, fries, and drink now costs $20+. No freezers. Fresh beef delivered multiple times a week. Prices that move with actual food cost. The Murrells never compromised on any of it — and they never apologized for what it costs.
Jerry and Janie Murrell opened the first location in 1986 in Arlington, Virginia, using the college fund their five sons had decided they didn't need. The sons — Jim, Matt, Chad, Ben, and Tyler — said they'd rather build a business than go to college. So the family built a burger restaurant instead.
The strategy for the next 15 years was simple: no franchising, no expansion outside DC, no shortcuts. Five locations. Fifteen years. A cult following.
In 2002, they engaged Fransmart to expand. Started franchising in 2003. Sold out of U.S. territory in 18 months. By 2012: 1,000+ locations across the U.S. and Canada. By 2024: a $2.3 billion brand operating in 29 countries.
All five sons are still running it. Matt and Jim visit stores. Chad oversees training. Ben selects franchisees. Tyler manages bun sourcing and quality.
"We raise our prices to reflect the cost we're paying for food." — Jerry Murrell
That's the same discipline that shaped Chick-fil-A into a $22.75 billion brand (2024) and that Layne's Chicken Fingers followed with 30 years of perfecting before expanding aggressively. It's also why domestic AUV has compressed 10.6% from its peak — the market shifted, and the model didn't.
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[SPLIT_INSIGHT] INTRO: The numbers tell two different stories about the same brand at the same time. LEFT_LABEL: The Proof LEFT: $2.3B in U.S. systemwide sales || 1,558 domestic locations. 450 international in 29 countries. || Named 2025 Global Restaurant Leader of the Year RIGHT_LABEL: The Tension RIGHT: AUV down 10.6% from peak — $1.536M in 2024 (2025 FDD) || National average meal at $20.84 — 50%+ above QSR peers, with pricing varying by market || Domestic territories sold out || $200M spent buying back 106 distressed franchise locations ACTION: Every number, every risk, every opportunity — 30 sources, zero spin. [/SPLIT_INSIGHT]
- Hamburgers (regular: two patties, little: one patty) with 15 free toppings - Kosher-style hot dogs (Hebrew National all-beef) - Hand-cut fries (Five Guys style or Cajun style, extra scoop for free) - Grilled cheese, BLT, vegetable sandwiches - Milkshakes (100% real ice cream)
The Pricing Problem — and What It Produced:Between 2021 and 2022, Five Guys raised prices by as much as 40%. The fresh-delivery model left the brand with no cost flexibility when commodity prices spiked — no frozen inventory to absorb swings, no hedging mechanism. Prices went up. Traffic responded.
By 2024, a Five Guys meal averaged approximately $20.84 nationally, compared to roughly $13–$14 at McDonald's, Burger King, Wendy's, and Jack in the Box. Prices vary by market — a location in Manhattan and one in Oklahoma City are not the same — but the gap versus fast food competitors widened significantly across the board.
[PRICE_COMPARISON] TITLE: Average Meal Cost — Five Guys vs. Fast Food Peers (2024 National Estimate) MAX: 25 Five Guys | $20.84 | highlight McDonald's | $13.75 | Burger King | $13.50 | Wendy's | $13.25 | Jack in the Box | $13.00 | CAPTION: National averages. Prices vary by market. Sources: 2024 consumer spending data. [/PRICE_COMPARISON]
A single March 2024 post showing a $21.91 bacon cheeseburger + fries + soda receipt was viewed 25.2 million times on X.
The pricing outcome by 2024: AUV compressed 10.6% from its 2022 peak of $1.718M to $1.536M — as reported in the 2025 FDD.
The brand tested a "Classic Combo" — smaller burger, fries, drink — at $12.99, its first direct concession to value perception pressure. Whether that move stabilizes domestic traffic or proves insufficient against lower-cost competitors is the open question heading into 2026.
The pricing history hasn't changed who is running Five Guys or the model they're running. The Murrells raised prices because the fresh-delivery model left them no structural alternative. They bought back 106 locations the same year pricing peaked. They're testing one value-tier option — not restructuring the menu.
That's a leadership posture of holding the model under pressure, not adapting it. The Classic Combo test, the international push into markets where pricing power is stronger, and the continued buyback strategy all point the same direction: leadership believes the model is right and the market needs to catch up.
[TIMELINE] 1986 | Jerry and Janie Murrell open first Five Guys in Arlington, Virginia using their sons' college fund 2001 | 5 locations total — 15 years operating exclusively in the DC metro area 2003 | Franchising begins; Fransmart hired to manage expansion 2003–2005 | Sold out of available territory in 18 months; 300 franchise permits in under 2 years 2012 | 1,000+ locations across U.S. and Canada 2013 | First international location opens in London, Covent Garden 2024 | 1,558 U.S. restaurants (613 corporate, 945 franchised); 450 international locations across 29 countries 2024 | Five Guys buys back 106 franchise locations from its largest U.S. franchisee for $200 million [/TIMELINE]
[MARKET_GRID] ACTIVE: All 50 U.S. states plus Washington D.C. (1,558 U.S. restaurants in 2024, 613 corporate and 945 franchised); 29 countries internationally including United Kingdom, France, Spain, Netherlands, Germany, UAE, Kuwait, Saudi Arabia, Malaysia, and Canada PIPELINE: International development ongoing in Europe and Asia-Pacific; North American franchise territories closed to new franchisees — available only through resale from existing operators; no new domestic franchises issued directly from Five Guys Enterprises NOTE: U.S. systemwide sales $2.27B; international systemwide sales $1.1B (2024). U.S. AUV $1.456M vs. international AUV $2.444M — a 68% gap that explains continued international growth focus while domestic franchising remains closed. [/MARKET_GRID]
U.S. Franchise Availability: Sold Out. North American territories are closed to new franchisees. Existing U.S. entry is through resale from current operators only — not through Five Guys Enterprises directly. International development (Europe, Asia-Pacific) remains active; contact Five Guys Enterprises' international team.- 1986: First location opens (Arlington, VA) - 2001: 5 locations (DC metro area) - 2003: Begin franchising - 2012: 1,000+ locations (U.S. and Canada) - 2013: First international location (London, Covent Garden) - 2024: 1,558 U.S. restaurants (613 corporate, 945 franchised) - 2024: 450 international locations across 29 countries
Why International Matters to a U.S. Reader:Five Guys' international locations averaged $2.444M AUV in 2024 against $1.456M domestically — a 68% gap. That difference explains why North American territories are closed while the brand continues building in Europe and Asia-Pacific.
[PRICE_COMPARISON] TITLE: AUV Comparison — U.S. vs. International (2024) MAX: 3 International | $2.44M | highlight U.S. Domestic | $1.46M | CAPTION: U.S.: $2.270B across 1,558 locations. International: $1.1B across 450 locations. Sources: 5, 11, 2. [/PRICE_COMPARISON]
The $200M Buyback — and What It Signals Now:When Five Guys' largest U.S. franchisee decided to diversify into other brands, Five Guys didn't let those 106 locations transfer to another operator. They paid $200 million to bring them back in-house. QSR Magazine reported the stated motivation in a single word: control.
That decision matters in 2026 because it explains the brand's current structure. Five Guys now operates at a 39%/61% corporate-to-franchise ratio — 613 corporate locations versus 924 franchised — dramatically higher than most QSR brands. While the entire industry spent twenty years going asset-light, Five Guys moved the other direction. That's not an accident. It's a stated philosophy: the fresh-daily model requires standards they can only guarantee through direct ownership.
For anyone evaluating this brand today: the 39% corporate ownership means the Murrells are operating in the same cost environment, the same supply chain, and facing the same customer reviews that franchisees face. That shared reality is either a feature or a warning depending on how you read the current AUV trajectory — and it explains why domestic franchising is closed. A brand with that philosophy has less incentive to maximize franchise count than to protect what the model produces. See our PE acquisitions analysis for the broader industry context.
[TABLE] Category | Range | Notes Total Investment | $977,850 - $1,375,750 | High barrier Franchise Fee | $25,000 | One-time Development Fee | $50,000 | Territory rights Royalty Fee | 6% gross sales (8% AK/HI/PR) | Industry standard Creative Fund | Up to 2% gross sales | National/regional marketing Local Advertising | Minimum 2% gross sales | Required spend Net Worth Required | $500K - $1.5M | Domestic FDD requirement Liquid Assets Required | $150K - $250K | Domestic FDD requirement [/TABLE]
Note: Corporate website claims $5M net worth and $2.5M liquid assets for international. FDD shows much lower requirements for domestic (which is sold out). This discrepancy signals international expansion requires deeper pockets than the historical domestic model.
[SPLIT_INSIGHT] INTRO: Five Guys' $200 million buyback of 106 locations from its largest franchisee is simultaneously the brand's most significant recent event and its most ambiguous signal. LEFT_LABEL: The Brand Protection Case LEFT: 38 years of family ownership. One quality standard, never compromised.||The buyback returned 106 locations to direct Murrell management — the same structure that built a $3.6B system across 29 countries.||When the brand's largest franchisee exits, the choice is: let those locations go to a new operator, or buy them back. The Murrells bought them back. RIGHT_LABEL: The Franchise Pressure Signal RIGHT: U.S. AUV was $1.536M in 2024 (2025 FDD) — down 10.6% from 2022 peak.||Domestic territories are sold out. International is the only new entry point.||Five Guys paid $200M to bring 106 locations in-house, choosing control over royalty cash flow.||Before writing a $977K–$1.38M check: ask what the domestic resale market looks like, and request Item 19 AUV data by unit age and region. ACTION: Ask Five Guys how a prospective domestic franchisee enters the system if territories are sold out — and what the current resale market looks like for existing units. Then ask for Item 19 AUV data segmented by unit age and region. The 10.6% AUV decline deserves a clear explanation before you write a check. [/SPLIT_INSIGHT]
Revenue Performance — 2025 FDD (covers 2024 operating data):[TABLE] Metric | 2022 | 2024 (2025 FDD) | Change AUV (Average Unit Volume) | $1.718M | $1.536M | -10.6% U.S. Systemwide Sales | $2.204B | $2.270B | +3.0% Total U.S. Locations | ~1,500 | 1,558 | +3.9% Franchise Locations | 979 | 945 | -3.5% Corporate Locations | 597 | 613 | +2.7% [/TABLE]
AUV declined 10.6% over two years. Total sales rose 3% only because location count increased — not because units are performing better. Franchise count fell after the $200M Encore buyback.
Estimated Franchisee Economics (QSR Research Hub analysis):[TABLE] Category | Amount | Methodology Yearly Gross Sales (Est.) | $1,536,000 | System average AUV per QSR Magazine Estimated Earnings at 15% | $230,400 | QSR Research Hub analysis (industry benchmark) Estimated Earnings at 20% | $307,200 | QSR Research Hub analysis (optimistic scenario) Payback at 15% margin | Est. 4.2 - 6.0 years | Estimated: Investment range ÷ $230,400 EBITDA Payback at 20% margin | Est. 3.2 - 4.5 years | Estimated: Investment range ÷ $307,200 EBITDA Anecdotal AUV (Podcast) | $1.15M | Wolf of Franchises (13-location owner) [/TABLE]
*Note: These are QSR Research Hub estimates using the system's publicly reported average AUV from QSR Magazine and industry-standard margin benchmarks for premium burger fast-casual concepts. Five Guys does not provide Item 19 earnings claims. All figures should be treated as directional estimates, not verified results.*
The Profitability Question:Five Guys does NOT provide Item 19 earnings claims in their FDD. Their disclosure states: "We do not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets."
This forces prospective franchisees to either talk to existing franchisees (allowed), rely on independent estimates, or accept complete uncertainty.
Anecdotally (podcast interview with 13-location owner Lucas Mitchell): Average revenue per location "over $1 million, close to $1.15 million." Industry benchmarks suggest 15-20% EBITDA margins for well-run premium burger concepts. FranchiseVoice estimates $180K-$300K annual profit per well-run location.
At an estimated system average of $1.536M AUV and an assumed 15% margin, that's roughly $230K in estimated annual profit. Estimated payback: 4.2–6.0 years assuming stable performance.
Competitor AUV Rankings (2024 Burger Chains):[TABLE] Brand | AUV | Locations In-N-Out Burger* | $5.8M | 415 Whataburger | $4.0M | 1,085 McDonald's | $3.96M | 13,600 Shake Shack | $4.1M | 373 Culver's | $3.83M | 997 Burger King | $1.63M | 6,701 Five Guys | $1.536M | 1,558 Sonic Drive-In | $1.54M | 3,461 [/TABLE]
*In-N-Out Burger is entirely company-owned; no franchise opportunities exist. AUV figures are not directly comparable to franchised system unit economics, In-N-Out pays no royalty fees, no franchise development fees, and no national advertising fund contributions that reduce franchisee earnings.
Five Guys' AUV ranks behind Burger King and just ahead of Sonic. In-N-Out does 3.8x Five Guys' volume per location. Shake Shack does 2.5x.
The gap raises a question: Shake Shack charges premium prices ($11–15 burgers) and gets $4.1M AUV. Five Guys charges premium prices ($12–18 burgers) and gets $1.536M AUV. In-N-Out does $5.8M AUV with the same fresh-never-frozen commitment, a simpler menu, and lower prices — a Double-Double runs under $6 vs. a Five Guys double at $10+.
[REPORT_CTA url="/reports/five-guys/" price="$497"] Five Guys Due Diligence Report - Full FDD gap analysis — every disclosure requirement mapped against the 2025 filing - Pro forma P&L modeling: top-quartile, median, and break-even scenarios across the $978K–$1.4M investment range - Operational risk scorecard: domestic freeze-out, AUV trajectory, labor model, territory availability - The 12 questions serious operators demand before signing a franchise agreement [/REPORT_CTA]
[CAUTION] A note on review platform methodology: QSR Research Hub sources customer pattern data from Tripadvisor and Yelp rather than Google Reviews. This is intentional. Google Reviews captures the highest volume of overall satisfaction ratings. Tripadvisor and Yelp attract reviewers who chose to document their experience in specific detail — a deliberate act that produces more operationally specific observations. Our readers are not choosing where to eat. They are evaluating what they will operationally inherit. We identify patterns — the same theme appearing across multiple locations, multiple markets, and multiple time periods. A single complaint at a single location is excluded regardless of platform. What qualifies is consistency. [/CAUTION]
U.S. Customer Satisfaction — Aggregate Data:The American Customer Satisfaction Index (ACSI) gave Five Guys a score of 75 out of 100 in 2025 — based on 16,381 completed U.S. consumer surveys (April 2024–March 2025). That score dropped approximately 4% year-over-year, the largest single-year decline among tracked QSR brands in that period. Yelp aggregates 96,000+ U.S. reviews at a 3.5/5 average — a middle-of-pack score for a premium-positioned brand.
These are the two most reliable U.S.-specific data sets available. Individual reviews below reflect the dominant themes from that aggregate.
THE GOOD On Fresh Quality:THE CHALLENGING Pattern 1 — Price-to-value perception (Orange City, FL):"Five Guys never a disappointment in the United States! The American burger par excellence: generous, tasty, ultra comforting. Crispy fries, perfect textures... and above all: peanut butter milkshake. A classic that never disappoints." — TripAdvisor, Las Vegas NV, October 2024
Pattern 2 — Execution inconsistency at select locations (Chicago, IL):"Five Guys is one of the most expensive, if not the most expensive, hamburger outlets in North America. Yes, I agree that the burgers and fries are very good but to pay this amount?" — TripAdvisor, Orange City FL, August 2024
Pattern 3 — Service wait time (Fishkill, NY):"Maybe it's just during the high season, but this place was a mess. The floor was FULL of peanut shells. There were not enough tables, and when you finally got one, no one had time to clean it, so you had to clean it yourself. They should definitely hire more people — otherwise, the staff suffers, the customers suffer, and no one has a good time. The burgers are good, though not very affordable." — TripAdvisor, Chicago IL, December 2024
A note on sourcing: High-volume Five Guys review data skews heavily toward international markets — particularly the UK, where Trustpilot presence is strong. QSR Research Hub does not use international review data to draw U.S. franchise conclusions. The ACSI score and Yelp aggregate above are U.S.-only. For location-level sentiment, speak directly with U.S. franchisees via the Item 20 contact list. Pattern: Pricing is the dominant negative in U.S. consumer conversation. What varies by location is execution — the fresh-daily model requires operational discipline that not every franchisee delivers equally. The 4% ACSI decline in 2025 is the clearest signal that customer satisfaction is tracking downward alongside AUV."The service is cafeteria style and service is slow. Waited 20 minutes for a burger." — TripAdvisor, Five Guys, Fishkill NY
"Work you to the bone for minimum wage while the managing staff go on massive paid work retreats each year." — Indeed, Five Guys employee review
"Advertised pay of $14 per hour but during the interview you find out it's actually $10 — with the opportunity to reach $14 only through tips, which are not consistent." — Indeed, Five Guys employee review
The Reality:"Great team environment and a clean kitchen. They actually care about quality, which makes the work feel like it means something." — Indeed, Five Guys employee review
Five Guys' 3.5–3.6 overall rating is above-average for QSR — meaningful for a brand at 1,500+ locations where dataset size makes it harder to inflate results. The work ethic the fresh-daily model demands (produce prepped daily, patties hand-formed, fries hand-cut every shift) is demanding and real. The employee dataset reflects this honestly: culture and team scores outperform pay and compensation scores.
The wage transparency issue — pay advertised higher than base rate, difference made up in tips — is a practical labor retention problem in markets where competing employers match or exceed the advertised rate without the same output expectations. For franchisees operating in higher minimum-wage markets (CA, NY, WA), this gap narrows; in lower minimum-wage markets, it widens.
In our view, Five Guys' 39% corporate ownership ratio creates an unusual dynamic: the brand operates in the same labor market as every franchisee. That shared reality produces more alignment between corporate standards and franchise actuality than most QSR agreements deliver. For prospective operators, franchisee validation calls from the Item 20 contact list will reveal whether corporate wage standards match local market realities.Named 2025 Global Restaurant Leader of the Year. 10% unit growth in international markets. $1.1 billion in international sales growing 1,000% since 2014.
The simple menu (burgers, dogs, fries) translates globally. No freezers creates premium positioning that works internationally. 450 locations across 29 countries proves the concept scales.
2. The 2022 Buyback Shows Commitment to ControlCovered in detail in the buyback section above. The short version: control over fee revenue, every time.
3. No Freezers = Real Competitive MoatEvery location uses only coolers, never freezers. Fresh beef delivered 2-3 times weekly. Hand-cut fries from visible potato stacks.
In an industry built on frozen shortcuts, this creates genuine differentiation — and a barrier to entry competitors can't easily replicate.
4. Cult Following Persists Through Price IncreasesFormer President Obama bought lunch at Five Guys in 2011. The brand remains one of the most talked-about burger brands in the premium fast-casual segment. Brand loyalty has persisted through 40% price increases.
5. Family Ownership After 40 YearsAll five Murrell sons remain actively involved: Matt and Jim visit stores, Chad oversees training, Ben selects franchisees, Tyler manages bun sourcing and quality.
This isn't a PE flip. This isn't a SPAC exit. This is generational commitment.
What They Need To Nail As They Scale: 1. The Pricing Pressure Is Real$20.84 average meal vs $13-14 at competitors. 40% price increases from 2021-2022. The viral $24 receipt was viewed 25.2 million times. Preply survey ranked Five Guys among the three most overpriced chains.
The Classic Combo ($12.99) is a start, but one value-tier option is tactical, not structural. A broader approach to value perception — without killing the fresh-daily model — is the harder problem.
2. AUV Declining While Competitors GrowShake Shack reached $4.1M AUV in 2024 — growing while Five Guys declined 10.6% over the same period. Both charge premium prices. The gap in volume-per-location raises the question of where customers perceive the better value.
3. Quality Execution Varies Wildly by LocationThe fresh-daily model requires operational excellence at every location — fresh beef, hand-cut fries, and made-to-order assembly all create more execution surface area than a frozen-protein competitor. One poorly managed location in a market can damage brand perception for an entire trade area. This is why they bought back 106 locations: more corporate ownership means more control. The remaining 945 franchise locations are where the consistency risk lives.
4. No Item 19 Earnings Claims Creates Information AsymmetryFive Guys' FDD explicitly states: "We do not make any representations about a franchisee's future financial performance."
Compare to: Chick-fil-A provides detailed Item 19 with actual franchisee performance data. Shake Shack is a public company with full financial transparency. McDonald's provides detailed Item 19 plus decades of franchisee case studies.
The absence of Item 19 earnings claims creates a real information gap for prospective franchisees making $1M+ investment decisions.
[LOCKIN] Five Guys does not disclose Item 19 earnings claims in its FDD, which means you are making a $977K–$1.375M investment decision without the financial performance data most franchise systems provide. Before signing any development agreement, request unit-level financial data from existing franchisees in your target market directly. Ask specifically: What is the actual net operating margin (not AUV) at your location? What are the fresh supply chain costs in this geography? Has AUV grown, been flat, or declined since you opened? Those conversations will tell you more than any FDD. [/LOCKIN]
5. Third-Party Delivery Amplifies the Pricing ProblemFive Guys burger: $12-15 + DoorDash fees (30%) + tip = $20-25 delivered. Customer gets cold fries (hand-cut fries don't travel well). Portion looks small in a delivery container vs the in-store experience.
In-N-Out chose to exit third-party delivery entirely, no DoorDash, no Uber Eats, drive-thru only. That approach protects quality and keeps prices low. Five Guys faces the same strategic choice: optimize packaging, create a delivery-specific menu, or exit third-party delivery.
6. Legal Disclosures in FDD Item 3Five Guys settled with 14 state attorneys general in 2018 over "no-poach" clauses in franchise agreements. The no-poach provisions were removed and notices posted. Prospective franchisees should read FDD Item 3 carefully.
[CALLOUT] 1,700+ locations. 38 years of family ownership. AUV down 10.6% in 2024. A $200 million buyback of 106 franchise locations.
Is Five Guys protecting the brand, or signaling that the franchise model is under pressure? [/CALLOUT]
Jerry Murrell opened the first Five Guys location in Arlington, Virginia in 1986 with his then-teenage sons after deciding they needed to either go to college or start a business. The family chose the business, and the five sons' college tuition money became the seed capital for what would become one of the fastest-scaling burger brands in history. Murrell built the concept around two principles that remain intact four decades later: fresh beef only, never frozen; and a menu focused on what they do best rather than what would chase trends.
The brand's name, Five Guys, refers to Jerry and his sons: Matt, Jim, Chad, Ben, and Tyler. All five remain actively involved in the business today, which is unusual for a brand at this scale.
"We raise our prices to reflect the cost we're paying for food.", Jerry Murrell
That's the philosophy: quality first, price second. The 40% price increases from 2021-2022 were driven by genuine input cost increases, not margin expansion. Whether that transparency holds as a brand positioning strategy into 2025 and beyond is the central leadership question.
The Five Sons:The Murrell sons represent the next generation of leadership: Matt and Jim focus on store operations and quality control (visiting locations); Chad oversees training programs; Ben manages franchisee selection and relationships; Tyler oversees the company's bakery operations. This division of responsibility creates a checks-and-balances structure that protects the brand from single-point-of-failure leadership risk. It also creates the complexity that comes with five family members sharing leadership of a $2.3 billion revenue brand.
Succession Planning:Five Guys is privately held. No succession plan has been publicly disclosed — which does not mean one doesn't exist; it means prospective franchisees signing a 10-year agreement cannot independently verify one. Jerry Murrell is in his late 70s. Whether the next generation continues the family ownership model, brings in professional management, sells to PE, or explores a public offering will define the brand's next chapter. The absence of a disclosed plan is both a risk (no visibility into the transition) and a strength (no PE pressure forcing short-term decisions). Operators evaluating a Five Guys partnership should ask the franchise development team directly about succession planning and long-term corporate ownership intent.
Leadership Assessment:The Murrell family's ownership model is the brand's most underappreciated asset and its most legitimate risk simultaneously. The fresh-daily, quality-over-speed philosophy only works if the leadership making those decisions is committed to it long-term. A PE acquisition or public offering that introduces margin pressure would challenge the no-freezer model directly — the easiest way to improve restaurant margins is to move to centralized commissary preparation, frozen protein, or reduced fresh ingredient cycles. The Murrell family's resistance to that logic is what gives the concept its differentiation. The question operators need to ask: will that resistance survive the ownership transition that is inevitable at some point?
- Owns 3-5 QSR locations - $5M+ net worth, $2.5M+ liquid - Wants premium brand with international growth potential - Understands fresh supply chain complexity
You're getting:
- ✅ Sold-out North America = proven demand - ✅ International AUV 68% higher than domestic = opportunity - ✅ $5M+ net worth requirement for international = less competition - ✅ Family ownership = stable long-term partner - ✅ Simple menu = operational efficiency at scale
You're accepting:
- ❌ AUV declining in U.S. (could signal international saturation ahead) - ❌ Pricing backlash could spread globally - ❌ 4.2-6.0 year payback (at 15% margin) is long for fast-casual - ❌ Fresh-daily supply chain = higher operational complexity than frozen models
Recommendation: If targeting international markets (Europe, APAC, Middle East) with $5M+ net worth, Five Guys is worth serious consideration. But request Item 19 data for your specific target country and speak to 5-10 existing international franchisees before committing.- Corporate professional with $500K savings - Wants to own a business, willing to work 60+ hours/week - No restaurant experience - Attracted to Five Guys brand recognition
Not recommended for first-time franchisees.
Five Guys requires either multi-unit restaurant experience or international market access. The fresh-daily model has zero margin for operational error. $977K-$1.375M total investment is high for a first franchise. And it's sold out in North America, no domestic territories available.
First-time franchisees should consider systems with lower investment requirements ($300K-500K range), longer franchisee support windows, domestic availability, and shorter payback periods (3-4 years).
Scenario C: The Brand Converter (Existing Restaurant Owner)- Owns independent burger restaurant or struggling franchise - Prime location with existing infrastructure - $1M+ net worth, $250K+ liquid
Not possible in North America (sold out). For international converters: this could work IF your current location does $1.5M+ annually AND your market supports $15-18 burgers AND you're comfortable with 10% gross sales going to fees (6% royalty + 2% creative fund + 2% local advertising).
In an era when private equity is reshaping QSR ownership, a family-owned brand spending $200 million to buy back franchise locations instead of selling more deserves attention.
The Opportunity:- Sold-out domestic market proves demand, all U.S. and Canada territories sold - International growth engine, 10% unit growth, $1.1B in sales, 29 countries - No-freezer model creates supply chain moat, competitors can't easily replicate - Family ownership means long-term stability, not a PE flip, not a SPAC exit
The Challenge:- AUV declining 10.6% while competitors grow - $20.84 average meal is 50% more than the next premium competitor - Quality execution varies enough to damage brand perception in key markets — fresh-daily model has no margin for operational error - No Item 19 transparency forces $1M+ investment decisions based on third-party estimates
The 5-Year Outlook:Domestic: Sold out means no new franchise opportunities. Existing franchisees face pricing pressure plus AUV decline. Given the stated Murrell philosophy and the 2022 precedent, additional buybacks are a pattern worth watching. Classic Combo rollout could stabilize traffic. Comp sales will be the key metric — currently unavailable publicly.
International: Strong growth trajectory (10% annual unit growth). $1.1B sales base with room to 3-5x. Higher AUVs than domestic ($2.44M vs $1.456M). Target markets: Southeast Asia, Latin America, Eastern Europe.
The Wild Card: What happens when Jerry Murrell retires? All five sons are actively involved, but whether a formal succession plan exists has not been publicly disclosed. Family ownership is both a strength (long-term thinking, no PE mandate) and a risk (undisclosed transition, capital constraints). Whether they sell to PE, go public, or maintain family control will define the next chapter."We raise our prices to reflect the cost we're paying for food.", Jerry Murrell
Five Guys is NOT accepting new franchise applications in the United States or Canada.
International Expansion Available:Europe, Middle East, and APAC, active international franchise opportunities.
Financial Requirements (International):- Minimum net worth: $5 million - Liquid assets: $2.5 million - Franchise fee: $25,000 - Development fee: $50,000
[FRAMEWORK_LIST] Actual franchisee earnings: Five Guys does not provide Item 19 financial performance representations. All profit estimates in this article represent QSR Research Hub analysis based on publicly available AUV data and industry margin benchmarks. All figures should be treated as estimates, not verified results. Franchisee failure rates: FDD Item 20 shows openings and closures but not the reasons behind them. Average franchisee tenure, refranchising plans, and whether they're planning additional buybacks are not publicly disclosed. Same-store sales trends: Only AUV data is publicly available, not comparable-store sales growth. The AUV decline from $1.718M to $1.536M could reflect new locations in lower-volume markets, pricing elasticity effects, or genuine demand decline. Without comp sales data, we can't determine which. International profitability by market: The 68% AUV premium in international markets is encouraging, but which specific countries are profitable? What are the unit-level economics in the UK (170+ locations) vs South Korea (4 locations)? This data is not publicly available. Supply chain cost breakdown: What percentage of COGS is fresh beef delivery? How much does the no-freezer model cost per location versus a frozen model? These operational details are not publicly disclosed. [/FRAMEWORK_LIST]
For a high-growth franchise with a completely different product category and highly variable unit economics, our Crumbl Cookie deep dive profiles the largest cookie brand in America and what the gap between a $251,706 average net profit and a $77,359 median means for operators evaluating the investment.
This article was produced independently. The brand profiled did not participate in, review, or approve this research prior to publication. All claims are sourced from publicly available materials and cited accordingly.
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Subscribe to QSR Research Hub1. Five Guys Corporate Website. "Our Story." Accessed March 2026. https://www.fiveguys.com/about-five-guys/
2. Restaurant Business. "Five Guys is the 2025 Global Restaurant Leader of the Year." September 30, 2025. https://www.restaurantbusinessonline.com/operations/five-guys-2025-global-restaurant-leader-year
3. Nation's Restaurant News. "Five Guys Strengthens Support, Infrastructure to Keep Up With Rapid Growth Rate." Paul Frumkin, August 9, 2010. https://www.nrn.com/marketing-branding/five-guys-strengthens-support-infrastructure-to-keep-up-with-rapid-growth-rate
4. Chowhound. "Five Guys Commitment To Fresh Ingredients May Be Why Its Pricier Fast Food." January 22, 2025. https://www.chowhound.com/1762398/why-five-guys-is-expensive/
5. Franchise Times. "35. Five Guys | Top-400-2025." September 29, 2025. https://www.franchisetimes.com/top-400-2025/35-five-guys/article_aff45d7a-a638-43c5-9c22-7bd4af16fb2b.html
6. Fox Business. "Five Guys' prices spark outrage after $24 receipt goes viral: 'Highway robbery'." March 7, 2024. https://www.foxbusiness.com/lifestyle/five-guys-prices-sparks-outrage-24-receipt-viral-highway-robbery
7. The Chef Recipe. "This Is Why Five Guys Prices Keep Going Up." May 12, 2025. https://thechefrecipe.com/2025/05/this-is-why-five-guys-prices-keep-going-up/
8. Preply. "The Most Overpriced Fast Food Chains in America." Accessed March 2026. https://preply.com/en/blog/most-overpriced-fast-food-chains/
9. WPDE. "Andrew Zimmern explains why your Five Guys order is $24." March 7, 2024. https://wpde.com/news/nation-world/andrew-zimmern-five-guys-prices-24-receipt-viral
10. Five Guys Corporate Website. "Franchising." Accessed March 2026. https://www.fiveguys.com/support-hub/franchise/
11. QSR Magazine. "Here's How Many Restaurants Five Guys Opened in 2024." September 10, 2025. https://www.qsrmagazine.com/story/heres-how-many-restaurants-five-guys-opened-in-2024/
12. Restaurant Business. "Five Guys | 2024." October 3, 2025. https://www.restaurantbusinessonline.com/franchise/five-guys
13. Restaurant Business. "Five Guys | 2025." December 4, 2025. https://www.restaurantbusinessonline.com/franchise/five-guys-2025
14. FranchiseVoice. "Five Guys Franchise Cost & Profit Margins Explained." Accessed March 2026. https://franchisevoice.com/five-guys-franchise-cost/
15. FranChimp. "2020 Franchise Disclosure Document for Five Guys Burgers and Fries." Accessed March 2026. https://franchimp.com/fdd/five-guys-burgers-and-fries/ *Note: This is a 2020 FDD filing (2019 operating data). Item 19 non-disclosure language cited in this article reflects the 2020 document; prospective franchisees must obtain the current FDD directly from Five Guys Franchising LLC to verify whether this language has changed.*
16. Wolf of Franchises. "Five Guys Franchise | Costs, Fees & Earning Stats (2025)." July 1, 2022. https://www.wolfoffranchises.com/five-guys-franchise/
17. BizBuySell. "Largest US Five Guys Franchisee Looks for New Deals, Expands Texas Holdings." November 9, 2020. https://www.bizbuysell.com/learning-center/franchise-news/largest-us-five-guys-franchisee-looks-for-new-deals/
18. Fast Casual. "Encore Restaurants purchases eight Five Guys units, plans to develop 45 more." July 11, 2020. https://www.fastcasual.com/news/encore-restaurants-purchases-eight-five-guys-units/
19. Nation's Restaurant News. "Here are the burger chains with the highest average unit volumes." June 24, 2025. https://www.nrn.com/burger-chains-highest-auv
20. QSR Magazine. "Shake Shack's Premium Position Pays Off." April 8, 2025. https://www.qsrmagazine.com/story/shake-shack-premium-position/
21. San Diego Magazine. "Shake Shack vs. In-N-Out: Which Burger is Better?" September 19, 2023. https://www.sandiegomagazine.com/food/shake-shack-vs-in-n-out/
22. Eat This, Not That. "In-N-Out vs Shake Shack Taste Test." June 8, 2023. https://www.eatthis.com/in-n-out-vs-shake-shack/
23. Tasting Table. "In-N-Out Is Better Than Shake Shack In Every Way." April 10, 2023. https://www.tastingtable.com/in-n-out-vs-shake-shack/
24. Medium. "Shake Shack vs. In-n-Out." January 23, 2018. https://medium.com/shake-shack-vs-in-n-out
26. Tripadvisor. "Five Guys, New York City Reviews." Accessed March 2026. https://www.tripadvisor.com/RestaurantReview-g60763-d1887496-Reviews-FiveGuys-NewYorkCityNewYork.html
27. TripAdvisor. Five Guys — Multiple locations. Las Vegas NV (positive: American burger par excellence, peanut butter milkshake, October 2024); Orange City FL (negative: most expensive hamburger outlet in North America, August 2024); Chicago IL (negative: peanut shell mess, understaffing, December 2024). https://www.tripadvisor.com
28. American Customer Satisfaction Index (ACSI). "Restaurant Report 2024–2025." Based on 16,381 U.S. consumer surveys, April 2024–March 2025. https://www.theacsi.org/industries/restaurant/
29. Yelp. "Five Guys — Restaurant Reviews." 96,000+ U.S. reviews, accessed March 2026. https://www.yelp.com/search?find_desc=Five+Guys
30. National Association of Attorneys General. "Settlement Agreement Between States and Five Guys Franchisor LLC." May 18, 2021. https://www.naag.org/issues/antitrust/five-guys-settlement/
31. TripAdvisor. Five Guys, Fishkill NY. Customer review: "The service is cafeteria style and service is slow. Waited 20 minutes for a burger." https://www.tripadvisor.com/RestaurantReview-g33698-FiveGuys-FishkillNewYork.html
32. Indeed and Glassdoor. "Five Guys employee reviews." 8,000+ reviews on Indeed, 5,000+ on Glassdoor. Accessed March 2026. https://www.indeed.com/cmp/Five-Guys/reviews