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Five Guys Burgers and Fries

Five Guys Franchisor, LLC

Company Information

10718 Richmond Highway Lorton, Virginia 22079

[email protected]

Five Guys Enterprises, LLC was formed as a Delaware limited liability company on November 7, 2002. Their principal place of business is 10718 Richmond Highway, Lorton, Virginia 22079.

FIVE GUYS® restaurants are fast casual dining restaurants which specialize m the sale of hamburgers, french fries, and related accompaniments m accordance with our comprehensive and imique system (the "System") The System mcludes distmctive signage, mtenor and extenor design, ddcor and color scheme, special recipes and menu items (including proprietary products and ingredients), umform standards, specifications, and procedures for operations, quality and umformity of products and services offered, inventory, management and financial control procedures (mcludmg pomt of purchase and trackmg systems), trammg and assistance, and quality control and promotional programs, all of which we may change, improve, and further develop, m our discretion Certain aspects of the System are more fully described m this Disclosure Document and the Manuals that are provided to you as a franchisee The restaurants are identified by certain trade names, service marks, trademarks, logos, emblems, and indicia of ongm, such as "FIVE GUYS", "FIVE GUYS FAMOUS BURGERS AND FRIES", "FIVE GUYS BURGERS AND FRIES", and others (collectively, the "Marks") We will refer to the restaurants which use our System and Marks as "FIVE GUYS® Restaurant" or'"Restaurant(s) "

2 Ongoing Lawsuits

FDD Effective Date Action

Franchise Rating

Franchimp Summary Rating

7/10

Investment Accessibility

7/10

Franchise System Development

Year Units at Start of Year Units Opened Units Terminated Non-Renewals Re-Acquired by Franchisor Ceased Operations Units at End of Year

Distribution of Five Guys Burgers and Fries Franchisee

Employee Contact Database

# Name Position Email Phone

Summary of Investment Costs

Upfront Franchise Fees

Minimum: $25,350 Maximum: $125,000

Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.

These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.

While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.

Total Investment Costs

Minimum: $256,200 Maximum: $591,250

Ongoing Fees

Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.

These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.

Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.

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