FIVE GUYS Franchise Startup Cost, Profit and Information
The Five guys franchise was incorporated in 1986.This franchise offer restaurant services such as casual dining, with the sale of burgers and franchise as its area of specialty. It began franchising in 2002. Its corporate headquarters is located in Lorton, Virginia.
This franchise characteristically has its outlets located in busy areas, most especially areas with high foot traffic. These include sports arena’s train stations, airports and retail shopping centers among other busy public areas.
Five Guy’s Franchise Financial Requirements
For franchise candidates interested in buying into the Five guys franchise, certain financial requirements are expected of them. These requirements have to be fully met before they can be considered for ownership.
These include an Initial Investment starting from $152,600 to $360,300, a Net-Worth requirement of $500,000, and a Liquid Cash requirement of $150,000. These are to be possessed before applying for this franchise opportunity.
Five Guys Franchise Ongoing Fees
The Five guys franchise also charges its franchisees certain ongoing fees which is a part of the agreement of owning a part of this franchise. These ongoing fees include an Initial Franchise fee to the tune of $25,000, an Ongoing Royalty fee of 6% and an Ad Royalty fee of 1%.
Five Guys Franchise Training
The franchisor provides a comprehensive training package to its new franchisees. This is mainly an on-site training provided by a Five Guys representative who would be on ground for a period of two weeks to ensure that the right skills are learned by the franchise owner and other working staff.
However, training for the franchisee and the managers is usually free, but in the event that the franchise owner would want additional staff being trained, he will be bearing the cost of the training which is $1,500 per individual.
The franchisor usually allows for training for the operating principal of the franchise, the general manager and the assistant manager at no additional cost to the franchisee. This training however is not a one-time training as it will be a continual process organized periodically in the form of refresher and update courses.
These are in a bid to update knowledge of the franchise managers to be current with happenings in the industry and to meet up and be innovative in services rendered.
The Five Guys franchise provides support to its franchisees in several areas. The areas of assistance include the grand opening of the franchise outlet. This is to ensure that the franchise is given that befitting opening reflective of the high quality service rendered. Also, there is a periodic newsletter publication that franchisees benefit from.
These newsletters offer insights into the operations of the franchise and also the industry as a whole. Support is also provided in the area of security and internet service to all franchisees.
Five Guys Franchise Financing Options
There is a financing option Five Guys franchisees benefit from. This is in form of a third party relationship the franchisor has with finance sources that provide financing to cover areas such as the startup costs and equipment.
The reason for this is to lessen the financial burden on the franchisee who would later pay up as the franchise starts making a good Five Guys franchise net profit.
Renewal of Franchise Tenure
This is subject to the initial terms stated in the franchise contract. For some franchisor’s, there is no provision for renewal of the franchise tenure, while for others, renewal is based on performance.
A franchisee might be given a renewal if he reaches a target or goal set by the franchisor. Renewal of franchise tenure therefore is subject to agreement entered between the franchisor and franchisee from inception of the contract.
Five Guys Franchise Terms and Conditions
The Five Guys franchise does not allow for a review of the terms and conditions of business between it and the franchisee. This is mostly due to the fact that the franchisee has little knowledge on running the Five Guys franchise. This is understandable because having established and run its franchise arm, Five Guys franchise knows what works and what does not work.
Hence, the terms and conditions set forth are usually rigid, because they know the operations of their franchise better, and will be providing direction to the franchisee. It is usually rigid because the franchisor wants to protect its image at all cost; therefore, it is interested in seeing that all its franchise’s are doing well.
How to Open Five Guys Franchise
To own a part of the Five Guys franchise, certain steps are necessary. These include registering your interest for joining this franchise. The channel for doing so is by visiting the franchisor’s website and navigating to the franchise section, where an online form is available for franchise candidates. This form is to be carefully filled and submitted. Information supplied on the form will be used to check for eligibility.
A back office goes through the submitted application and checks if the application is worthy of consideration or not. If qualified, the applicant is contacted by a Five Guys representative for further discussions. This leads to the presentation of the Franchise Disclosure Document (FDD) to the franchise candidate.
It is required by law that this document should be considered by the franchise candidate for a period of 10 days to enable comprehensive evaluation of terms set forth therein.
If the franchisee is satisfied to these terms and conditions of ownership, he/she can commit to the contract. If not, the contract can be rejected.
If you are interested in owning a Five Guys franchise, then the above information should give you a head start on what to expect and the requirements to fulfill.