Five Guys vs Hardee'sFranchise Comparison 2026
Five Guys and Hardee's represent two different approaches in the QSR space. Here's how they compare on investment costs, fees, revenue potential, and market presence.
Quick Comparison
Side-by-Side Comparison
| Metric | Five Guys | Hardee's | Difference |
|---|---|---|---|
| Franchise Fee | $25,000 | $25,000 | 0% |
| Total Investment (Low) | $306,000 | $1.4M | -78% |
| Total Investment (High) | $641,000 | $2.6M | -76% |
| Cash Required | $300,000 | $340,000 | -12% |
| Royalty Rate | 6.0% | 4.0% | Higher |
| Advertising Fee | 1.5% | 5.5% | Lower |
| Estimated Revenue | $1.4M | $1.2M | +13% |
| Number of Locations | 1,700 | 1,740 | Fewer |
| Year Founded | 1986 | 1960 | Newer |
| Training Duration | 3 weeks | 2 weeks | Longer |
Note: Data sourced from public FDD filings and industry reports. Actual costs vary by location, real estate, and format. Always review current FDD Item 7 and Item 19 disclosures before making investment decisions.
Detailed Analysis
About Five Guys
Premium burger concept with fresh ingredients and no freezers. Higher food costs but strong brand loyalty and per-unit sales.
About Hardee's
Legacy QSR brand in the Midwest and Southeast known for charbroiled burgers and biscuit-based breakfast. Part of CKE Restaurants.
Investment Comparison
Five Guys requires a lower initial investment (avg $473,500) compared to Hardee's(avg $2.0M), making it more accessible for first-time franchisees. However, Hardee's may offer similar revenue potential.
Fee Structure
Five Guys has lower ongoing fees (7.5% total) compared to Hardee's(9.5% total), which means more of each sales dollar stays with the franchisee. Over time, this can significantly impact profitability.
Market Position
Hardee's has a significantly larger footprint with 1,740 locations compared to Five Guys's 1,700. This larger network typically means better brand recognition, more purchasing power, and stronger operational support.
Frequently Asked Questions
How much does it cost to open a Five Guys vs Hardee's franchise?
Five Guys requires an initial investment of $306,000 to $641,000, while Hardee's requires $1.4M to $2.6M. Five Guys has the lower average investment at $473,500.
What are the ongoing fees for Five Guys vs Hardee's?
Five Guys charges a 6.0% royalty plus 1.5% advertising fee (7.5% total). Hardee's charges 4.0% royalty plus 5.5% advertising fee (9.5% total). Five Guys has lower total ongoing fees.
Which franchise makes more money: Five Guys or Hardee's?
Based on estimated average unit revenue, Five Guys generates $1.4M per location compared to $1.2M for Hardee's. However, profitability depends on many factors including local market, operating costs, and management.
How many locations does Five Guys have vs Hardee's?
Five Guys has 1,700 locations, while Hardee's has 1,740 locations. Hardee's has the larger footprint, which typically means stronger brand recognition and supply chain advantages.
Is Five Guys or Hardee's a better franchise investment in 2026?
Both Five Guys and Hardee's are established QSR brands with proven models. Five Guys offers a lower entry point, while Five Guys shows higher average revenue. The best choice depends on your available capital, local market conditions, and personal goals. Always review the current FDD before making investment decisions.
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