Five Guys Franchisor, LLC is the franchisor. Five Guys offers the right to open and operate a restaurant on the terms of a single franchise agreement. The franchisee may be at any business entity form: individual, partnership, corporation, or other.

Five Guys restaurants are fast-casual dining restaurants. Our specialization is hamburgers and French fries, other food items prepared with recipes and ingredients of the franchisor, as much as other food and beverages that are part of the complex and unique system of the franchisor.

Typical locations of Five Guys restaurants are shopping centers and urban locations that the franchisor will accept. Such locations as train stations, airports, sports arenas, university campuses, and others can be considered on a case-by-case basis. Each restaurant is typically 2,000 to 3,000 square feet. 

The initial training program must be completed, to the franchisor’s satisfaction, by the general manager, operating principal, and one assistant manager. The initial training program will take place at the company’s headquarters or at another location that the franchisor may designate. This training is approximately two weeks long. Nevertheless, it may take up to six weeks of training.

The franchisor or its representative will provide free instructors and training materials for the initial training for the franchisee’s general manager, operating principal, and one assistant manager. For additional charge franchisee may have additional personnel trained, the cost of training will be $1,500 per person.

The franchisor will provide for opening the franchisee’s first restaurant its trained representatives. For 10 days trained representatives will conduct on-site pre-opening and opening training, and also will provide supervision and management assistance.

During the term of the Franchise Agreement, the franchisor can provide additional trained representatives to provide on-site remedial training to restaurant personnel, if a franchisee will request or franchisor considers necessary, and training personnel will be available. A franchisee (if an individual), the general manager, and at least one assistant manager must attend all additional training required by the franchisor.

Territory Granted: Under In the Franchise Agreement, franchisees have the right to operate a restaurant single selected location within the assigned area, approved by the franchisor (primary area of responsibility). The primary area of responsibility will be determined by the franchisor before signing the Franchise Agreement.

The Primary area of responsibility is determined based on various market and economic factors, such as assessment of demographics, penetration of the franchise system and similar enterprises, availability of suitable sites, and growth trends in the market.

If the franchisee complies with the franchise agreement, the franchisor grants that he won't establish a restaurant or authorize any other person or entity to establish a restaurant within the primary area of responsibility, while the Franchise Agreement is in force. If the primary area of responsibility is limited to only the specific physical space occupied by the restaurant, the franchisor does not grant any exclusive territory.

Obligations and Restrictions: If franchisees are individuals, they must fulfill all obligations of the operating principal. In the event, franchisees are a business entity (partnership, corporation, or other forms) one of the “controlling principals” must be the operating principal. In this case, the operating principal must continue to hold an ownership interest in the franchise or any entity that directly or indirectly controls the franchise. Franchisees should always have in the state of the general manager and other staff necessary for the operation and management of the restaurant.

The franchisor will individually accept the general manager. The general manager must meet the educational and business criteria of the franchisor as specified in manuals or other written instructions. Franchisees must comply with all franchisor's standards and specifications related to all food, food products, beverage items, ingredients, supplies, materials, fixtures, furnishings, equipment (including electronic cash register, computer hardware and software), utensils and other kitchen items and products used or sold at the restaurant. All menu items, food products, and other products, including dine-in and carry-out, must be provided in the manner and style required by the franchisor in writing.

Term of Agreement and Renewal: The duration of the initial franchise term is for 10 years but can be determined earlier. The agreement renewal for additional consecutive 10-year terms is possible for the franchisee if requirements are met.

Financial Assistance: The franchisor does not offer, directly or indirectly, any financing arrangements to franchisees. The franchisor does not guarantee a franchisee’s notes, leases or other obligations.