Five Guys vs Carl's Jr. franchise USA 2026: is the $510K investment gap worth it?
Five Guys is the lighter bet on entry — $978K vs $1.5M (about $510K less). Five Guys runs the bigger network at 945 vs 942 outlets. Carl's Jr. takes less off the top (4% royalty vs 6%).
01 What actually matters
Numbers that separate them on a 5-year horizon — not the franchise-development pitch.
On pure entry capital, Five Guys is 1.5× cheaper than Carl's Jr. — $978K vs $1.5M. That gap compounds over a 5-year horizon because build-out, equipment, opening inventory and the additional funds in FDD Item 7 all scale with format size.
One-time franchise fees are worth noting (FDD Item 5): Five Guys charges $25K upfront on top of the setup capex. This is a non-refundable sunk cost before revenue begins — bake it into your at-risk capital calculation.
The operational model splits the room: Five Guys expects high involvement; Carl's Jr. expects medium involvement. If you're an absentee investor this matters as much as the capex — the wrong match burns you via under-managed operations.
02 The numbers, visualised
Primary format per brand, from FDD Item 7. A brand's smaller express or non-traditional formats can cost materially less.
Initial investment (FDD Item 7)
Total initial investment, low end of each brand's FDD Item 7 range for its primary format. Several US brands also run smaller express, non-traditional or conversion formats at materially lower investment — check the brand page for the full Item 7 table.
Network scale — total outlets
Total US outlets from FDD Item 20. Bigger networks mean more brand recognition and supplier scale; smaller ones mean less intra-brand competition in your trade area.
Customer ratings
Which brand's outlets are rated higher by customers, aggregated across locations. Exact star rating and review volume are in Brand Health.
Direction only — the underlying rating & review count are Pro data.
03 Side-by-side
Straight from each brand’s FDD. Green badge marks the more favourable value for a typical first-time operator.
| Metric | Five Guys | Carl's Jr. |
|---|---|---|
| Initial investment (Item 7) | $978K ↓ Lower | $1.5M |
| Royalty (Item 6) | 6% | 4% ↓ Lower |
| Gross margin | — | — |
| Min space (sq ft) | 2000 ↓ Smaller | 2200 |
| Total US outlets (Item 20) | 945 ↑ Bigger | 942 |
| Franchise fee (Item 5) | $25K | $25K |
| Additional funds | — | — |
Not sure if Five Guys or Carl's Jr. actually fits *you*?
BrandFit asks 6 visual questions about your operator profile, capital, and location — then ranks all 182 brands by predicted success-fit for your situation. See where these brands really stand for someone like you.
Ready to talk to Five Guys or Carl's Jr.?
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04 Explore these brands in depth
Same data plus the full FDD breakdown, fee load, contract fairness and SBA lending picture — free on every brand page.
05 Frequently asked
Wrapped in FAQPage JSON-LD for SERP rich-result eligibility.
Which Burgers / QSR brand has the largest network in the US?
Five Guys operates the largest network among these — 945 outlets. Large networks offer more brand recognition and supplier scale, but also mean denser intra-brand competition in already-saturated markets.
Are these Burgers / QSR franchises still awarding territory in my state?
FDD Item 20 lists every outlet by state, plus openings, closures, transfers and terminations for the last three years — the fastest way to see whether a brand is still expanding near you or has gone quiet. Five Guys runs the largest network here at 945 outlets. Note that fourteen states — California, New York, Illinois, Virginia, Washington and others — require franchise registration, so a brand may simply be unregistered in yours.
Can I own multiple Burgers / QSR franchises?
Yes — multi-unit ownership is the norm in mature US Burgers / QSR systems, and most franchisors sell it as an area development agreement: a fee paid up front for the right to open N units on a fixed schedule inside a defined territory. The terms sit in FDD Items 5 and 12. Miss the development schedule and the franchisor can usually reclaim the territory, so treat the schedule as a covenant, not a target.
How long does it take to break even on a Burgers / QSR franchise?
Payback on a Burgers / QSR franchise in the US typically runs 24–48 months, depending on site traffic, build-out cost, and the royalty plus ad-fund load in FDD Item 6. The brands on this page start at $978K of initial investment (Item 7); pair that with the brand's Item 19 financial performance representation, where one is published, to model your own payback instead of relying on a franchise-development pitch.
Five Guys vs Carl's Jr. — which is the better franchise investment?
There's no universal winner. Five Guys suits operators who value lower entry capex and faster capital recovery. Carl's Jr. suits operators who have the capital for a premium launch and prefer established scale. Your location's traffic profile, your available capital, and your operating style together determine the right answer.