FIVE GUYS

Five Guys Bakery, an indirect subsidiary of our Parent Company, is currently the only approved supplier for the hamburger and hotdog buns and rolls that you must use. You must pay Five Guys Bakery by electronic wire transfer once your order is placed. PAR Technology Corporation is currently the only approved supplier of the Point-of-Sale system. All other supplies and products may be purchased from any supplier previously approved by us, provided they maintain and conform to our standards and specifications. Other than Five Guys Bakery, there are no approved suppliers in which any of our officers owns an interest.

We currently promote the Restaurants and the products offered by the Restaurants primarily using initiatives aimed at increasing quality control measures to generate greater word-of-mouth publicity (e.g., our secret shopper program). As the number of Restaurants in the System expands, we may consider limited use of other forms of media, including: television, radio, magazine and newspaper advertising campaigns; and direct mail and outdoor billboard advertising. The majority of any such advertising will be developed by members of our staff or third-party consultants. For the 2024 fiscal year, the Creative Fund spent 60.86% of the Weekly Contributions on the employee rewards program recognizing those store employees who performed well as determined by our third-party secret shopper consultants. Additionally, the Creative Fund spent 25.46% of the Weekly Contributions on certain online marketing efforts (e.g. Chemistry, Yext and Cardilytics) in connection with our “Break-Away Fund” created in consultation with our Franchisee Advisory Council. We transferred 13.68% to the rebate funds, along with $857,000 in carryover from 2023, to compensate our system-wide, third-party administrators for our secret shopper program, Marketforce, and to issue Coca-Cola related rebates to our franchisees.

Local Advertising. We generally do not allow any advertising by our franchisees, but may approve limited advertising on a case-by-case basis. Any advertising materials must first be approved by us before you use them. You must not advertise or use our Marks in any fashion on the Internet, World Wide Web, webpages, microsites, social media and networking sites (including Facebook, X (formerly Twitter), TikTok, LinkedIn, You Tube, Snapchat, Pinterest, Instagram, etc.) blogs, vlogs, podcasts, applications to be used on mobile devices (e.g., iOS or Android apps) or other applications, etc. (whether they are now in existence or developed at some point in the future) (“Digital Sites”) without our prior written consent, which we have the right to provide and/or revoke for any reason. We have sole discretion and control over any profile(s) using or relating to the Marks, or that display the Marks, that are maintained on Digital Sites. We may use part of the contributions we collect under the Franchise Agreement to pay or reimburse the costs associated with the development, maintenance and update of the profile(s). We may (but are under no obligation to) establish guidelines under which you may establish profiles or otherwise establish a presence on Digital Site platforms (“Digital Site Guidelines”). In that event, you must comply with the standards, protocols and restrictions that we impose on that use in the Digital Site Guidelines or otherwise in writing.

Local Advertising. We generally do not allow any advertising by our franchisees, but may approve limited advertising on a case-by-case basis. Any advertising materials must first be approved by us before you use them. You must not advertise or use our Marks in any fashion on the Internet, World Wide Web, webpages, microsites, social media and networking sites (including Facebook, X (formerly Twitter), TikTok, LinkedIn, You Tube, Snapchat, Pinterest, Instagram, etc.) blogs, vlogs, podcasts, applications to be used on mobile devices (e.g., iOS or Android apps) or other applications, etc. (whether they are now in existence or developed at some point in the future) (“Digital Sites”) without our prior written consent, which we have the right to provide and/or revoke for any reason. We have sole discretion and control over any profile(s) using or relating to the Marks, or that display the Marks, that are maintained on Digital Sites. We may use part of the contributions we collect under the Franchise Agreement to pay or reimburse the costs associated with the development, maintenance and update of the profile(s). We may (but are under no obligation to) establish guidelines under which you may establish profiles or otherwise establish a presence on Digital Site platforms (“Digital Site Guidelines”). In that event, you must comply with the standards, protocols and restrictions that we impose on that use in the Digital Site Guidelines or otherwise in writing.

Local Advertising. We generally do not allow any advertising by our franchisees, but may approve limited advertising on a case-by-case basis. Any advertising materials must first be approved by us before you use them. You must not advertise or use our Marks in any fashion on the Internet, World Wide Web, webpages, microsites, social media and networking sites (including Facebook, X (formerly Twitter), TikTok, LinkedIn, You Tube, Snapchat, Pinterest, Instagram, etc.) blogs, vlogs, podcasts, applications to be used on mobile devices (e.g., iOS or Android apps) or other applications, etc. (whether they are now in existence or developed at some point in the future) (“Digital Sites”) without our prior written consent, which we have the right to provide and/or revoke for any reason. We have sole discretion and control over any profile(s) using or relating to the Marks, or that display the Marks, that are maintained on Digital Sites. We may use part of the contributions we collect under the Franchise Agreement to pay or reimburse the costs associated with the development, maintenance and update of the profile(s). We may (but are under no obligation to) establish guidelines under which you may establish profiles or otherwise establish a presence on Digital Site platforms (“Digital Site Guidelines”). In that event, you must comply with the standards, protocols and restrictions that we impose on that use in the Digital Site Guidelines or otherwise in writing.

Local Advertising. We generally do not allow any advertising by our franchisees, but may approve limited advertising on a case-by-case basis. Any advertising materials must first be approved by us before you use them. You must not advertise or use our Marks in any fashion on the Internet, World Wide Web, webpages, microsites, social media and networking sites (including Facebook, X (formerly Twitter), TikTok, LinkedIn, You Tube, Snapchat, Pinterest, Instagram, etc.) blogs, vlogs, podcasts, applications to be used on mobile devices (e.g., iOS or Android apps) or other applications, etc. (whether they are now in existence or developed at some point in the future) (“Digital Sites”) without our prior written consent, which we have the right to provide and/or revoke for any reason. We have sole discretion and control over any profile(s) using or relating to the Marks, or that display the Marks, that are maintained on Digital Sites. We may use part of the contributions we collect under the Franchise Agreement to pay or reimburse the costs associated with the development, maintenance and update of the profile(s). We may (but are under no obligation to) establish guidelines under which you may establish profiles or otherwise establish a presence on Digital Site platforms (“Digital Site Guidelines”). In that event, you must comply with the standards, protocols and restrictions that we impose on that use in the Digital Site Guidelines or otherwise in writing.

Local Advertising. We generally do not allow any advertising by our franchisees, but may approve limited advertising on a case-by-case basis. Any advertising materials must first be approved by us before you use them. You must not advertise or use our Marks in any fashion on the Internet, World Wide Web, webpages, microsites, social media and networking sites (including Facebook, X (formerly Twitter), TikTok, LinkedIn, You Tube, Snapchat, Pinterest, Instagram, etc.) blogs, vlogs, podcasts, applications to be used on mobile devices (e.g., iOS or Android apps) or other applications, etc. (whether they are now in existence or developed at some point in the future) (“Digital Sites”) without our prior written consent, which we have the right to provide and/or revoke for any reason. We have sole discretion and control over any profile(s) using or relating to the Marks, or that display the Marks, that are maintained on Digital Sites. We may use part of the contributions we collect under the Franchise Agreement to pay or reimburse the costs associated with the development, maintenance and update of the profile(s). We may (but are under no obligation to) establish guidelines under which you may establish profiles or otherwise establish a presence on Digital Site platforms (“Digital Site Guidelines”). In that event, you must comply with the standards, protocols and restrictions that we impose on that use in the Digital Site Guidelines or otherwise in writing.

Local Advertising. We generally do not allow any advertising by our franchisees, but may approve limited advertising on a case-by-case basis. Any advertising materials must first be approved by us before you use them. You must not advertise or use our Marks in any fashion on the Internet, World Wide Web, webpages, microsites, social media and networking sites (including Facebook, X (formerly Twitter), TikTok, LinkedIn, You Tube, Snapchat, Pinterest, Instagram, etc.) blogs, vlogs, podcasts, applications to be used on mobile devices (e.g., iOS or Android apps) or other applications, etc. (whether they are now in existence or developed at some point in the future) (“Digital Sites”) without our prior written consent, which we have the right to provide and/or revoke for any reason. We have sole discretion and control over any profile(s) using or relating to the Marks, or that display the Marks, that are maintained on Digital Sites. We may use part of the contributions we collect under the Franchise Agreement to pay or reimburse the costs associated with the development, maintenance and update of the profile(s). We may (but are under no obligation to) establish guidelines under which you may establish profiles or otherwise establish a presence on Digital Site platforms (“Digital Site Guidelines”). In that event, you must comply with the standards, protocols and restrictions that we impose on that use in the Digital Site Guidelines or otherwise in writing.

Local Advertising. We generally do not allow any advertising by our franchisees, but may approve limited advertising on a case-by-case basis. Any advertising materials must first be approved by us before you use them. You must not advertise or use our Marks in any fashion on the Internet, World Wide Web, webpages, microsites, social media and networking sites (including Facebook, X (formerly Twitter), TikTok, LinkedIn, You Tube, Snapchat, Pinterest, Instagram, etc.) blogs, vlogs, podcasts, applications to be used on mobile devices (e.g., iOS or Android apps) or other applications, etc. (whether they are now in existence or developed at some point in the future) (“Digital Sites”) without our prior written consent, which we have the right to provide and/or revoke for any reason. We have sole discretion and control over any profile(s) using or relating to the Marks, or that display the Marks, that are maintained on Digital Sites. We may use part of the contributions we collect under the Franchise Agreement to pay or reimburse the costs associated with the development, maintenance and update of the profile(s). We may (but are under no obligation to) establish guidelines under which you may establish profiles or otherwise establish a presence on Digital Site platforms (“Digital Site Guidelines”). In that event, you must comply with the standards, protocols and restrictions that we impose on that use in the Digital Site Guidelines or otherwise in writing.

We currently promote the Restaurants and the products offered by the Restaurants primarily using initiatives aimed at increasing quality control measures to generate greater word-of-mouth publicity (e.g., our secret shopper program). As the number of Restaurants in the System expands, we may consider limited use of other forms of media, including: television, radio, magazine and newspaper advertising campaigns; and direct mail and outdoor billboard advertising. The majority of any such advertising will be developed by members of our staff or third-party consultants. For the 2024 fiscal year, the Creative Fund spent 60.86% of the Weekly Contributions on the employee rewards program recognizing those store employees who performed well as determined by our third-party secret shopper consultants. Additionally, the Creative Fund spent 25.46% of the Weekly Contributions on certain online marketing efforts (e.g. Chemistry, Yext and Cardilytics) in connection with our “Break-Away Fund” created in consultation with our Franchisee Advisory Council. We transferred 13.68% to the rebate funds, along with $857,000 in carryover from 2023, to compensate our system-wide, third-party administrators for our secret shopper program, Marketforce, and to issue Coca-Cola related rebates to our franchisees.