Five Guys Burgers and Fries

Given the 10-year total potential term, what is the franchisor's renewal policy—are renewals automatic, discretionary, or subject to renegotiation, and what renewal terms typically apply?

The Investment Costs score of 46 falls significantly below the typical range of 69.0-78.0 for QSR franchises. Can you provide an itemized breakdown of all initial investment costs, including real estate, equipment, working capital, and training?

What specific circumstances led to the 1 pending litigation case against the franchisor, and what is the current status and expected resolution timeline?

Can you detail the 1 case where the franchisor was plaintiff—what were the claims, outcome, and any ongoing financial impacts?

The Contract Terms score of 55 is below the typical 60.0-65.0 range. Which specific contract provisions are most franchisor-favorable, and are there opportunities to negotiate these terms?

The franchise agreement requires personal guarantees from all principals with unlimited scope and spouse guarantees covering all financial obligations. Are there any limitations or caps on these guarantees, and what happens if a principal is released from the guarantee?

Regarding the requirement to purchase inventory and supplies exclusively from the franchisor, its affiliates, or designated suppliers, what pricing oversight exists and are there opportunities for competitive bidding?

Can you provide the transfer fee calculation methodology and any additional costs associated with unit transfers beyond the stated $5,000 fee?

Of the 50-56 annual transfers, what is the average time on market before sale, and what support does the franchisor provide to franchisees seeking to sell their units?

Are there any restrictions on franchisor price-setting for products or services, and how often have maximum prices been adjusted in the past 3 years?

What specific training and ongoing support is provided given the 95/100 Support & Training score, and are there additional costs beyond royalties and ad fund fees?

The exclusive territory rights have a Territory score of 100, well above the typical range. What are the specific boundaries and size of a typical exclusive territory, and how is protection enforced?

Can you provide details on the 1 case initiated by the franchisor—were any franchisees involved, what was the outcome, and are there any lessons learned?

Has the franchisor ever denied renewal or terminated a franchise agreement, and if so, what were the primary reasons given?

Given the System Health score of 76 (above typical range), what key operational metrics or franchisee satisfaction measures support this score?

Are there any circumstances under which the franchisor could change menu offerings, pricing, or operational standards that would significantly impact franchisee profitability?

What percentage of system units are company-owned versus franchised, and does the franchisor operate any direct competition to franchise units?

Can you clarify whether the 2-year, 5-mile non-compete applies only during the term or after franchise termination or expiration?