How do Derek and Five Guys royalties compare?

Derek: 6.5% (2026 FDD · Item 6 · PDF p. 11); Five Guys: 8% (2026 FDD · Item 6 · PDF p. 16). Royalties as disclosed in Item 6; other recurring fees are listed separately.

Franchise opportunities compared

Derek vs Five Guys

Reviewed figures from each brand's Franchise Disclosure Document (FDD), side by side. Each figure carries its FDD year and page. This is not a ranking or recommendation, and the two FDDs may cover different years and location groups.

DDerek2026 FDD

Five Guys2026 FDD

Initial investment · Item 7

Derek

Not available

Five Guys

$52,100 – $927,850

2026 FDD · Item 7

Initial franchise fee · Item 5

Derek

$35,000

2026 FDD · Item 5 · PDF p. 11

Five Guys

$25,000

2026 FDD · Item 5 · PDF p. 15

Royalty · Item 6

Derek

6.5%

2026 FDD · Item 6 · PDF p. 11

Five Guys

2026 FDD · Item 6 · PDF p. 16

Before you compare

Both sets of figures come from 2026 FDDs.
Five Guys discloses more than one business format, so the investment range spans formats; the full report breaks them out.
Only neither brand has reviewed Item 19 figures here.

Financial commitment

Disclosure

DDerek

Five Guys

Estimated initial investment (Item 7)

Derek

Not available

No reviewed Item 7 total

Five Guys

$52,100 – $927,850

2026 FDD · Item 7

Standard initial franchise fee (Item 5)

Derek

$35,000

2026 FDD · Item 5 · PDF p. 11

Five Guys

$25,000

2026 FDD · Item 5 · PDF p. 15

Royalty (Item 6)

Derek

6.5%

Royalty fee

2026 FDD · Item 6 · PDF p. 11

Five Guys

s. If the Restaurant is located in Alaska, Hawaii or Puerto Rico, the Royalty Fee is — 8%

2026 FDD · Item 6 · PDF p. 16

Brand / advertising fund (Item 6)

Derek

Advertising fee maximum rate — 2%

2026 FDD · Item 6 · PDF p. 11

Five Guys

$250

, depending on your advertising needs When billed Prohibited Product or Service Fine — 250

2026 FDD · Item 6 · PDF p. 16

System scale & health

Disclosure

DDerek

Five Guys

Total outlets (Item 20)

Derek

Not available

No reviewed outlet counts

Five Guys

1,583

Outlets at end of 2025

2026 FDD · Item 20 · PDF p. 54

Net outlet change (Item 20)

Derek

Not available

Only one year reported

Five Guys

+62

Calculated: 1,521 at end of 2023 → 1,583 at end of 2025

Outlet exits (Item 20)

Derek

Not available

No complete exit records for a year

Five Guys

Not available

No complete exit records for a year

Franchising since (Item 1)

Derek

Not available

Not in reviewed records

Five Guys

Not available

Not in reviewed records

Franchisor founded (Item 1)

Derek

Not available

Not in reviewed records

Five Guys

Not available

Not in reviewed records

Financial performance (Item 19), by location group

DDerek

Not disclosed — no Item 19 financial performance representation

Five Guys

Not disclosed — no Item 19 financial performance representation

Item 19 groups are shown separately and never combined. Revenue or sales figures are not profit. Net outlet change and turnover are Franopolis calculations from the disclosed counts; turnover is a count-based rate, not a measure of owner earnings.

Derek vs Five Guys: common questions

How do Derek and Five Guys royalties compare?: Derek: 6.5% (2026 FDD · Item 6 · PDF p. 11); Five Guys: 8% (2026 FDD · Item 6 · PDF p. 16). Royalties as disclosed in Item 6; other recurring fees are listed separately.
Do Derek and Five Guys disclose financial performance (Item 19)?: Derek makes no Item 19 financial performance representation; Five Guys makes no Item 19 financial performance representation. Different location groups are not directly comparable, and revenue is not profit.

Answers restate the reviewed figures above. Not a ranking or recommendation.

How Franopolis reviews FDD figures