Five Guys: Revolutionizing the Burger Experience

Five Guys, a renowned fast-casual restaurant chain famous for its hamburgers and French fries, was founded in 1986 and began franchising in 2002. The company's headquarters are in Lorton, Virginia. Typically, Five Guys franchises are located in retail shopping centers and other urban areas that fit the company's site selection criteria, which may also include non-traditional venues such as train stations, sports arenas, airports, and university campuses, subject to approval.

Five Guys distinguishes itself through a dedication to quality, using fresh, never frozen beef, and providing a wide variety of toppings for extensive customization of their menu items.

Franchisees receive the right to operate in a specified location within an assigned area approved by the franchisor, referred to as the primary area of responsibility. This area is usually defined as the contiguous property controlled by the landlord where the restaurant is situated, though it may be limited to the specific physical space occupied by the restaurant, indicating that franchisees may not receive an exclusive territory.

Training 

The franchisor offers an extensive training program for franchisees, covering crucial aspects of restaurant operations and management. The training includes:

Initial Training: Conducted at the franchisor's corporate headquarters or a designated location, this program is scheduled approximately 5 or 6 times a year, typically lasting around 2 weeks, with the possibility of extending up to 6 weeks. It covers a broad spectrum of essential topics for running the restaurant and is provided to the Operating Principal, general manager, and one assistant manager at no extra cost. Additional staff can be trained for a fee.

On-site Training: Prior to opening the first restaurant, the franchisor offers on-site pre-opening and opening training, supervision, and management assistance through a trained representative. This service is provided at no additional cost for the first restaurant, with a potential per diem fee for extra assistance or training for subsequent restaurants.

Ongoing and Remedial Training: The Operating Principal, general manager, and other key personnel are required to attend further training programs and seminars as determined by the franchisor. Instructors and training materials for these sessions are provided by the franchisor. While mandatory training incurs no fee, the franchisor may charge for additional training requested by the franchisee.

Web-Based Training and Training Video Series: The franchisor may also develop and require participation in online training programs and provide training videos. These resources are confidential and integral to maintaining high operational standards.

Territory Protection

The franchisor provides territory protection to franchisees, but the extent of this protection varies based on the specific terms outlined in the franchise and development agreements. For instance, during the term of the Franchise Agreement, provided a franchisee complies with the terms, the franchisor commits not to establish or authorize another entity to set up a restaurant within the franchisee's Primary Area of Responsibility.

This area is typically defined as the contiguous property controlled by the landlord where the restaurant is located, such as a shopping mall, strip mall, university campus, or hospital, and may be limited to the specific physical space occupied by the restaurant.

However, it is important to note that while there is some level of territorial protection, it does not necessarily grant an absolute exclusive territory free from any competition.

The franchisor retains certain rights, such as advertising and selling products or services within the franchisee's territory, offering collateral products under the brand's marks from any location, and selling food and beverage services at temporary or seasonal facilities within Reserved Areas.