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Updated RecentlyMcDonald's vs Five Guys Burgers & Fries Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of McDonald's vs Five Guys Burgers & Fries including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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| Investment | $1,314,500 - $2,306,500 | $306,200 - $716,250 |
| Franchise Fee | $45,000 | $50,000 - $125,000 |
| Royalty Fee | 4% | 6% |
| Advertising Fee | 4%+ | 2% |
| Year Founded | 1955 | 1986 |
| Year Franchised | 1955 | 2002 |
| Term Of Agreement | 20 years | 20 years |
| Term Of Agreement | 20 years | 20 years |
| Renewal Fee | $45K | - |
Business Experience Requirements |
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| Experience | ||
Financing Options |
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| In-House/3rd Party | In-House/3rd Party | |
| Franchise Fees | No/No | No/No |
| Start-up Costs | No/No | No/Yes |
| Equipment | No/Yes | No/Yes |
| Inventory | No/No | No/No |
| Receivables | No/No | No/No |
| Payroll | No/No | No/No |
Training & Support |
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| Training | On-The-Job Training: 500 hours Classroom Training: 72 hours Additional Training: At local McDonald's restaurant | - |
| Support | Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software | Newsletter, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives |
| Marketing | Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app | Regional advertising |
| Operations |
82% of all franchisees own more than one unit
Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators) | - |
Expansion Plans |
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| US Expansion | Yes | Yes |
| Canada Expansion | No | No |
| International Expansion | Yes | No |
Company Overviews
About McDonald's
Ray Kroc, a milkshake mixer salesman, ventured to California in
1954 to visit McDonald's hamburger stand, where he heard they were
running eight mixers at once. Kroc was impressed by how rapidly
customers were served and, seeing an opportunity to sell many more
milkshake machines, encouraged brothers Dick and Mac McDonald to open a
chain of their restaurants. Kroc became their business partner and
opened the first McDonald's in Des Plaines, Illinois in 1955.
McDonald's brand is in 122 countries around the world. Thirty thousand locations serve 51 million customers each day. More than 70 percent of McDonald's restaurants around the world are owned and operated by independent local business people.
Most standalone McDonald's restaurants offer both counter and drive-through service, with indoor and sometimes outdoor seating. The Drive-Thru, Auto-Mac, or McDrive as it is known in many countries, often has separate stations for placing, paying for, and picking up orders, though the former two steps are frequently combined. In some countries "McDrive" locations near highways offer no counter service or seating. In contrast, locations in high-density city neighborhoods often omit drive-through service.
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#7 on Franchise Rankings.com
#3 in Canada's top franchises.
#3 in Franchise 500 for 2020
#11 in Franchise 500 for 2021
About Five Guys Burgers & Fries
At Five Guys, we don't like to talk about ourselves very much. We would rather focus on making burgers. So if you're interested in franchising, we hope it's because you love our burgers, love that we have a simple menu, and want to serve great burgers in a clean and friendly environment with very little fuss. If you feel that way, then there isn't much more to say!
With the simple focus on quality, service and cleanliness, Five Guys has opened over 300 restaurants in less than five years. If you're interested in being a part of the Five Guys family, then fill out our form to reach our Franchise Department. We will get back to you with an application and will let you know what areas of the country are open for development.
Markets Available for Development
We are pleased to announce that we are currently sold out in the United States and in Canada.
Our franchisees are feverishly working on completing development of their territories. This means that there are some areas without Five Guys locations, but those territories have been sold and franchisees will be opening there soon.
#54 on Franchise Rankings.com