Brand Shoutouts
When your largest U.S. franchisee owns 109 locations and decides to sell, most brands say goodbye and move on. Five Guys raised $200 million and bought them back.
By Justin K. Sellers · 10 min read · March 4, 2026
When your largest U.S. franchisee owns 109 locations and decides to sell, most brands say goodbye and move on.
Five Guys raised $200 million and bought them back.
That's 106 restaurants acquired in four tranches between March and August 2022. Encore Restaurants walked away. Five Guys took control.
Why does a brand with 1,558 U.S. locations and $2.3 billion in systemwide sales reverse course on franchising?
In our view, they're not building a franchise empire. They appear to be protecting a 40-year cult following built on fresh beef, hand-cut fries, and no freezers.
And it's working internationally: Named 2025 Global Restaurant Leader of the Year, 10% unit growth in international markets, 450 locations across 29 countries, $1.1 billion in international system sales.
All while navigating domestic pricing pressure that has customers calling $24 meals "highway robbery."
In our view, that combination — buying back control domestically while expanding aggressively abroad — tells you exactly what this brand values. For context on how other legacy brands are navigating the $18.6 billion PE acquisition wave reshaping QSR ownership, see our analysis.
Jerry and Janie Murrell didn't rush into Five Guys.
They opened the first location in 1986 in Arlington, Virginia. Named it after their five sons: Jim, Matt, Chad, Ben, and Tyler. The sons told their parents they'd rather start a business than go to college. The Murrells used the college fund to open a burger restaurant.
The Five Guys Strategy:Build cult following first. Franchise second.
From 1986 to 2001, they operated exactly five locations in the DC metro area. That's 15 years perfecting the model before selling a single franchise territory.
Former NFL player Mark Moseley helped them franchise starting in 2003, working with Fransmart. The brand sold out of territory within 18 months. Over 300 franchise permits sold in a year and a half.
Jerry Murrell's Philosophy:"We raise our prices to reflect the cost we're paying for food." — Jerry Murrell
No frozen anything. No freezers in any location. Only coolers. Fresh beef delivered multiple times per week. Hand-cut fries from stacked potatoes visible to customers.
That philosophy built a $2.3 billion brand. It's also why a burger, fries, and drink now costs $20+.
Fifteen years building the model before franchising. That's the same kind of patience that shaped Chick-fil-A into a $22.7 billion brand — and the same philosophy Layne's Chicken Fingers followed with 30 years of operation before aggressive expansion.
- 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, with extra scoop for free)
The Differentiator:No frozen beef. Ever.
Most fast food chains use frozen patties stored for months. Five Guys gets fresh beef delivered multiple times weekly. More frequent deliveries. More food waste during slow periods. Can't bulk-buy frozen meat when prices drop.
No freezers means no shortcuts.
Restaurants stack bags of potatoes in dining areas because there's literally no freezer storage. It's a feature, not a bug. Customers see the fresh product.
No trendy pivots. No plant-based experiments. Just burgers, dogs, fries, and a cult following that made them one of the most talked-about burger brands online.
In our view, that discipline — refusing to chase trends while competitors cycle through menu innovations — is what keeps the brand identity intact. It's a similar philosophy to Eggs Up Grill's refusal to add dinner service despite the revenue opportunity.
- 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 - 2024: 450 international locations across 29 countries
Current Footprint:- 1,558 U.S. locations (613 corporate, 945 franchised) - 450 international locations - Markets: 29 countries including UK, Middle East, Europe, APAC, Australia, South Korea
Recent Wins:- Named 2025 Global Restaurant Leader of the Year - International unit count grew 10% in 2024 - System sales grown 1,000% since 2014 - $1.1 billion in international system sales (2024)
The 2022 Buyback:In March, May, June, and August 2022, Five Guys acquired 106 locations from Encore Restaurants for approximately $200 million.
Encore Restaurants had been Five Guys' largest U.S. franchisee, operating 109 locations across California, Colorado, Massachusetts, Oklahoma, and Texas. They shifted focus to other brands, including 7 Brew.
Five Guys' franchise fleet declined from 979 (end of 2022) to 924 (heading into 2025) as a result. But corporate-owned locations increased from 597 to 613.
In our view, the direction is clear: they're buying back control. For a deeper look at what that move signals about the industry, see our PE acquisitions analysis.
Five Guys is NOT accepting new franchise applications in the United States or Canada. All domestic territories have been sold.
International Expansion Available:The brand is actively seeking franchise partners in select international markets:
- Europe - Middle East - APAC region
Financial Requirements (International):- Minimum net worth: $5 million - Liquid assets: $2.5 million - Franchise fee: $25,000 - Development fee: $50,000
Visit Franchise Page"Bath 5 Guys was a pleasant surprise. Not only were the staff helpful and patient with our dietary needs, but the quality of the food was excellent (100% beef, fresh cuts, no freezers)." — Simon, Trustpilot (June 2024)
"For my part the best burgers, of the other brands tested, they are my favorites. The fries are delicious, burgers and hot dogs also and much less fat than elsewhere." — Grego G., Tripadvisor (December 2024)
"One of the best places for a quick burger. A pretty good rival to McDonalds/ChickfilA. If you are looking for a juicy burger, get to Five Guys asap." — James B., Sitejabber (March 2024)
On the Generous Portions:"Visited Sheffield The Moor today. Staff and service was excellent. Nothing was too much trouble. Liam was particularly helpful. Shop was sparking clean and staff were all very busy working hard." — Lindy Elliott, Trustpilot (November 2025)
"The fries are good, burgers and service could use a bit of work." — Trustpilot (2024)
Pattern: When execution is right, customers recognize the fresh quality and generous portions that built the cult following. The pricing conversation is constant — but so is the repeat business."I get that they are expensive but decent quality and get to choose exactly what you want." — Trustpilot (2024)
Named 2025 Global Restaurant Leader of the Year. 10% unit growth. 450 locations across 29 countries. $1.1 billion in international sales. System sales grown 1,000% since 2014.
The simple menu (burgers, dogs, fries) translates globally. Customizable burgers provide opportunities for local taste preferences.
2. The 2022 Buyback Shows Commitment to ControlBought back 106 locations for $200 million when Encore Restaurants exited. In our view, that's not a brand looking to maximize franchise fees. That's a brand protecting operational standards.
3. No Freezers = Real DifferentiatorEvery location uses only coolers, never freezers. Fresh beef delivered multiple times weekly. Hand-cut fries from visible potato stacks.
In an industry built on frozen shortcuts, that matters.
4. Cult Following Remains StrongIn 2009, President Obama made an unannounced stop at a Five Guys in Southeast Washington, D.C., drawing national media coverage. Remarkable brand loyalty despite pricing pressure.
5. Family Ownership After 40 YearsAll five Murrell sons remain involved: Matt and Jim visit stores, Chad oversees training, Ben selects franchisees, Tyler runs the bakery.
In an era when private equity is reshaping QSR ownership, family-owned brands that buy back franchise locations instead of selling more are worth understanding. Here's why Five Guys matters:
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 - Global Restaurant Leader of the Year — industry recognition for international execution - No-freezer model creates supply chain moat — operational complexity becomes a competitive advantage - Family ownership means long-term stability — not a PE flip, not a SPAC exit
"We raise our prices to reflect the cost we're paying for food." — Jerry Murrell
[DEEP_DIVE_CTA url="/article/five-guys-deep-dive/"] Want the full story? - Unit economics and the real cost of the no-freezer model - Customer challenges (pricing pressure, consistency complaints) - Why buying back 106 locations signals a shift in franchise strategy - What the $5M net worth requirement tells you about operator expectations - Who this concept is built for internationally (and who should look elsewhere) [/DEEP_DIVE_CTA]
We never ask brands for permission before publishing. Our job is independent analysis, not marketing material. If something in this piece doesn't match your experience — good or bad — that's valuable information for the operator community.
Sponsors get placement, not editorial control. We write what the research shows.
This article draws on publicly available reporting, franchise industry data, and customer reviews about Five Guys.
Key limitations remain:
We don't know exactly why Five Guys chose to buy back Encore's 106 locations rather than let another franchisee acquire them.QSR Magazine reported the transaction details, but Five Guys has not publicly stated whether the decision was driven by operational quality concerns, strategic repositioning, or opportunistic pricing.
We don't know Five Guys' unit-level economics for corporate-operated vs. franchised locations.The shift from 979 to 924 franchised locations suggests a strategic preference for corporate control, but comparative P&L data between the two models is not publicly available.
We don't know how pricing pressure is affecting same-store sales domestically.The $24 viral receipt and "highway robbery" narrative are well-documented, but Five Guys does not publicly report same-store sales figures to confirm whether pricing is driving traffic declines.
We don't know the terms or performance metrics of Five Guys' international franchise agreements.While the $5M net worth and $2.5M liquidity requirements are published, international unit-level economics, royalty structures, and performance benchmarks are not publicly available.
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.
QSR Research Hub is an independent publication. We receive no compensation from any brand featured in our Brand Shoutouts.
QSR Research Hub publishes independent, operator-first analysis — 3,000+ word deep dives with 15-25 cited sources. No vendor spin. No paywall. No pitch disguised as an article. Join a growing network of operators, investors, and suppliers who want real research.
Subscribe to QSR Research Hub1. 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/
2. FDD Exchange. "Five Guys Enterprises 2025 FDD." Item 7 franchise fee $25,000; development fee $50,000; net worth requirement $5M; liquid assets $2.5M; 1,558 U.S. locations (613 corporate, 945 franchised) per Item 20 outlet data; domestic franchise territories sold out in North America; international availability in APAC, EMEA, and other regions. https://fddexchange.com/view-fdd-docs/five-guys-2025-fdd
3. 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
4. NBC News / The Washington Post. "Family Burger Joint Has Recipe for Success." April 3, 2006. https://www.nbcnews.com/id/wbna12125844
5. 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
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. 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/
8. 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/
9. 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/
10. Trustpilot. "Five Guys Reviews." Accessed March 2026. https://www.trustpilot.com/review/5guys.com
11. Tripadvisor. "Five Guys, New York City Reviews." Accessed March 2026. https://www.tripadvisor.com/Restaurant_Review-g60763-d1887496-Reviews-Five_Guys-New_York_City_New_York.html
12. Sitejabber. "Five Guys Reviews." Accessed March 2026. https://www.sitejabber.com/reviews/fiveguys.com
13. Trustpilot. "5 Guys Burgers and Fries Reviews." Accessed March 2026. https://www.trustpilot.com/review/fiveguys.com
14. San Diego Union-Tribune. "Obama stops at Five Guys for cheeseburger." May 29, 2009. https://www.sandiegouniontribune.com/2009/05/29/obama-stops-at-five-guys-for-cheeseburger/
15. Five Guys Franchising. Official franchise page. Accessed March 2026. https://www.fiveguys.com/support-hub/franchise/