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Franchise Market Update: Weekly Overview & Spotlight on Five Guys

QSR

Franchise Market Update: Weekly Overview & Spotlight on Five Guys

Market Analyst

Market Analyst

·16 min read

Monthly Overview

Welcome to this week's franchise market update. We're tracking 42 total franchises this week, with exciting additions across multiple sectors.

Data Update Statistics

Franchise Activity This Month

  • New Franchise Additions2
  • Updated Franchise Records40
Total42

Updated Data

  • Basic Investment Information23
  • Email Addresses13
  • New FDDs23
  • Logos18
  • Phone Numbers23
  • Websites23

This Month's Franchise News

  • Private equities, Carlyle and Boyu, are the leading bidders to acquire a majority stake in Starbucks China. We understand the non binding offer deadline was some time last week and the expected valuation is close to S4bn.
  • Bain Capital has rumored to made a bid for Costa Coffee, which is put up for sale by Coca Cola. Bain already owns Gail's and PizzaExpress in the UK.
  • According to IFA CEO, Matt Haller, Franchising has outpaced the overall US economy for the past 5 years.

New Franchise Additions

This month we welcomed 2 new franchise brands across diverse industries.

Entertainment & Recreation

1 new brand
Entertainment:
  • Mr. Gatti Family Entertainment

Lodging & Leisure

1 new brand
Lodging:
  • Holiday Inn Express

Franchise Updates Summary

This month we processed 21 franchise updates across multiple sectors.

Home Services

5 updates
Building & Construction:
  • Border Magic
Cleaning Services:
  • Coverall
Maintenance & Repairs:
  • The Grout Doctor
  • Aerus
  • Junk Shot

Retail

1 update
Specialty Retail:
  • Crown Trophy

Education & Arts

1 update
Education:
  • Abrakadoodle

Lodging & Leisure

6 updates
Hotels & Resorts:
  • Crowne Plaza
  • InterContinental Hotels & Resorts
  • EVEN Hotels
  • avid hotels
  • Vignette Collection
Lodging:
  • Holiday Inn

Food & Beverage

7 updates
Baked Goods:
  • Ben's Soft Pretzels
  • Cinnaholic
Cafes & Coffee Shops:
  • Caribou Coffee
Food Retail (Grocery:
  • Doc Popcorn
Restaurants (Sit-Down):
  • Green Leaf's Beyond Great Salads
  • Penn Station
  • Hot Head Burritos

Professional Services

1 update
Home Services:
  • Neat Method

Franchise Spotlight: Five Guys Burgers and Fries

Iconic "better burger", which continues to be privately owned by the Murrell family.

Company Profile

Founded
Virginia, USA
Franchise Launched
1986
Concept
Fast-casual burgers and fries
Service Model
Fast-casual dining

What They Do:

Five Guys has more than 1,900 stores worldwide and focuses on quality and consistency. In the UK, Five Guys boasts of 120 day-grain-fed-beef sourced from local farms Ireland. However, in the US and Canada, we understand the beef is sourced from multiple suppliers including Schweid & Sons.

Why we like it:

There is a charm with privately backed QSR brands that continues to be run by its founders. The brand is consistent and there is clearly momentum with international unit counts growing by 10% in 2024, with a focus on US and Asia. However, Five Guys European operations has recorded a pre-tax loss of GBP 37m in 2024 despite seeing revenue growth to GBP 560m for the year. The premium burger segment is also facing headwinds from rising labor and food costs, as well as pressure on consumer spending. Nevertheless, we saw Shake Shack's revenue grew 12.6% in the second quarter of 2025 so continues to be growth potential in the premium burger segment. Given Five Guy's desire for great scalability, we believe there could be scope to negotiate a lower investment fee.

Behind the numbers:

  • Intial Training: Not less than 10 days (Item 11)
  • Royalty fee: 6% of Gross Sales (8% for AK/HI/PR)
  • Creative Fund contribution: Up to 4% of Gross Sales
  • Local advertising expenditure: May be required up to 2% of Gross Sales (Item 6/11)
  • Note:: The total combined advertising/marketing obligations are capped at 4% of Gross Sales

Performance Metrics

Unit Development

End 2022 - 27% year-over-year expansion

Total Units:
1,558
Company-Owned:
613
Franchised:
945

Revenue Performance

Avg. Annual Sales:
$$2,484,936
Top Quartile:
$$3,505,292

Investment Requirements

Total Investment Range:
$1,027,850 - $1,500,750
Initial Franchise Fee:
$25,000

Support Structure

Five Guys provides comprehensive support including site selection assistance, initial training for three key staff members at no charge, and 10 days of on-site assistance (5 days pre-opening and 5 days post-opening). Ongoing support includes regular restaurant evaluations, updated operational materials and manuals, continuous training programs, and access to approved supplier networks. Franchisees contribute up to 2-4% of gross sales to a Creative Fund that covers system-wide marketing, quality control initiatives, secret-shopper programs, and brand development—ensuring consistent standards across all locations while providing franchisees with professional marketing support they might not be able to afford individually.

Five Guys Burgers and Fries logo

Interested in a Five Guys Burgers and Fries franchise?

Get more information about ownership opportunities.