Five Guys vs Taco Bell: Which Is the Better Investment?

Side-by-side comparison of investment costs, fees, unit economics, and franchisee satisfaction. Data from FDD disclosures and franchise database — updated 2026.

Food & Restaurant Real Data Not Investment Advice
FG

Five Guys

Food & Restaurant
$306K – $641K
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VS
TB

Taco Bell

Food & Restaurant
$576K – $3.4M
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At a Glance: Key Differences

Data-driven observations based on disclosed figures. Not investment advice — verify current numbers in each franchise's FDD.

Investment Cost
Five Guys wins on investment range ($2.7M less) vs Taco Bell.
Fee Burden
Taco Bell wins on royalty rate (0.5% lower) vs Five Guys.
Unit Count
Taco Bell wins on total units (6,750 more) vs Five Guys.
Satisfaction
Five Guys wins on franchisee satisfaction vs Taco Bell.

Investment & Fees

Metric Five Guys Taco Bell
Min Investment $306K $576K
Max Investment $641K $3.4M
Franchise Fee $25K $45K
Royalty Rate 6.0% 5.5%
Ad Fund Rate 3.0% 4.3%

Unit Economics

Metric Five Guys Taco Bell
Avg Unit Revenue $1.5M $2.1M
Avg Profit Margin N/A N/A

Scale & Growth

Metric Five Guys Taco Bell
Total Units 1,750 8,500
Annual Growth 3.5% 3.5%
Failure Rate 2.0% 2.0%

Franchisee Performance

Metric Five Guys Taco Bell
Franchisee Satisfaction 77/100 73/100

Track Record

Metric Five Guys Taco Bell
Years in Business 38 62
Years Franchising 22 58

Financial Requirements

Metric Five Guys Taco Bell
Min Net Worth Required $1.5M $1.5M
Liquid Capital Required $300K $750K

Operations

Metric Five Guys Taco Bell
Avg Employees 30 35
Training Weeks 4 6

Frequently Asked Questions

Is Five Guys or Taco Bell a better franchise investment?

The answer depends on your goals, budget, and market. Five Guys has 1,750 total units and a 77/100 franchisee satisfaction score. Taco Bell has 8,500 total units and a 73/100 franchisee satisfaction score. Use our ROI Calculator to model both scenarios.

How much does it cost to open a Five Guys franchise?

Based on data in our database, opening a Five Guys franchise requires an initial investment of $306K – $641K. The franchise fee is $25K, with ongoing royalties of 6.0%. Always request the current FDD for exact figures.

How much does it cost to open a Taco Bell franchise?

Based on data in our database, opening a Taco Bell franchise requires an initial investment of $576K – $3.4M. The franchise fee is $45K, with ongoing royalties of 5.5%. Always request the current FDD for exact figures.

What is the royalty rate for Five Guys vs Taco Bell?

Five Guys's royalty rate is 6.0%. Taco Bell's royalty rate is 5.5%. That means Taco Bell has the lower ongoing royalty burden.

Which has more locations — Five Guys or Taco Bell?

Five Guys has 1,750 total units. Taco Bell has 8,500 total units. A larger system can mean more brand recognition, but also more territorial competition.

Is Five Guys or Taco Bell semi-absentee friendly?

Five Guys is typically run as a owner-operator model. Taco Bell is typically run as a semi-absentee model. If passive income is your goal, semi-absentee models let you hire a manager to run day-to-day operations.

Data sourced from franchise disclosure documents and public records. Investment ranges, royalty rates, and unit counts change — always request current FDD before making investment decisions. Last updated March 2026.

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