Explore the world of Five Below, the fast-expanding retail chain that has won over the hearts and wallets of bargain hunters across the country. As the name suggests, this unusual shop has a vast selection of goods, all of which are $5 or less, making it a popular stop for discerning buyers looking for excellent deals. This article will examine the background of the Five and Below Store franchise, the factors that contributed to its success, and prospective recruitment prospects for ambitious business people. 

The expansion and financial success of Five Below as of 2023 have been impressive. A 1% to 4% growth in comparable sales is forecast for the year, putting the company’s net sales in the range of $3.49 billion to $3.59 billion. The net sales increased to $1.12 billion in the fourth quarter alone, an increase of about 13% from the previous quarter. By 2023, 200 more stores will have opened as a result of this quick expansion. As of April 26, 2023, Five Below had a market cap of $11 billion, which is still a sizable amount despite a decline in net income for the third quarter of 2023.

What is the Five and Below Store?

A well-known American retail store known as Five Below focuses on providing a wide range of goods for $5 or less. The shop caters to pre-teens, teens, and young adults, and it offers a variety of goods in categories like toys, games, fashion accessories, bath and body, candies, snacks, home décor, and more. Consumers who are on a tight budget love visiting the brand because of its exciting and enjoyable shopping environment. Please note that Five Below does not offer franchises, and all their stores are corporate-owned 

Is Five Below a Franchise Opportunity?

Five Below does not provide franchising opportunities and doesn’t have locations or open territories. It is a public corporation that directly owns and operates its retail locations. Despite the company’s rapid expansion across the country, it does not provide prospective business owners with franchising alternatives. If you’re interested in starting a comparable retail business, you should look at other options in the cheap retail industry.

Facts That Nobody Told You About Five Below

  • Founded in 2002: Five Below was founded by David Schlessinger and Tom Vellios, who previously co-founded the educational toy store chain Zany Brainy.
  • Rapid expansion: Since its inception, Five Below has grown rapidly, exceeding 1,000 locations across the United States by the end of 2021.
  • Publicly traded: Five Below went public in July 2012, and its shares are traded on the NASDAQ stock exchange under the symbol FIVE.
  • Target demographics: The primary target market for Five Below is pre-teens, teens, and young adults, but the store’s wide array of products attracts shoppers of all ages.
  • Trend-driven merchandise: Five Below constantly updates its inventory to keep up with the latest trends, ensuring a fresh and exciting shopping experience for its customers.
  • Philanthropic efforts: Five Below is dedicated to giving back and has partnered with organizations like Alex’s Lemonade Stand Foundation, St. Jude Children’s Research Hospital, and Boys & Girls Clubs of America to support various charitable causes.
  • Private label products: In addition to offering popular brands, Five Below also carries its own private label products, providing customers with even more affordable options.
  • Five Beyond: In 2021, Five Below introduced the “Five Beyond” concept in select stores, offering a curated selection of products priced above $5 to broaden its appeal.
  • Co-founder’s success: Five Below co-founder David Schlessinger is also the founder of Encore Books, a successful chain of bookstores that he started in 1985.
  • Environmental commitment: Five Below is committed to reducing its environmental impact and has implemented energy-efficient lighting, HVAC systems, and recycling programs in its stores and distribution centers.

Five Below Franchise Review and Information

Industry Type Specialty Discount Store
Sub Category Retail  Opportunities
Year Established 2002
Company Name Five Below
Founder/Management Head David Schlessinger and Tom Vellios
Franchising Started Does not
Employees at Company H.O Not available
Franchise Expansion Plan Not applicable
Number of Units 1000+ stores
Number of Franchise Units No franchises
Social Media Handles Facebook
Company Office location  701 Market St # 100, Philadelphia, PA 19106, USA


How much does a Five Below franchise cost?

Five Below does not offer franchises. All their stores are corporate-owned. Therefore, there are no franchise requirements or cost associated with Five Below. If you are interested in pursuing other franchise opportunities, I can help you research those.

Five and Below Franchise Store Price and Cost

I m All their stores are corporate-owned. Therefore, there are no franchise fees, costs, royalty fees, advertising fees, terms of the agreement, or renewal information associated with Five Below. If you are interested in other franchise opportunities, please let me know, and I would be happy to help you research those.


How much do Five Below franchise owners make?

All their stores are corporate-owned. Therefore, there are no Five Below franchise owners, and consequently, there is no information on their earnings. If you are interested in other franchise opportunities and their potential earnings, please let me know, and I would be happy to help you research those.


What are the Five Below store reviews?

Five Below is a popular retail chain that focuses on selling a wide variety of products priced at $5 and below. The store is known for offering trendy items in categories such as toys, games, fashion accessories, beauty products, home decor, and more. Here are some general reviews and opinions about Five Below:

Pros of Five and Below Stores

  1. Affordable pricing: Customers appreciate the low prices and the value they get for their money.
  2. Wide product assortment: The store offers a diverse range of products, which attracts customers with different interests.
  3. Trendy items: Five Below is known for offering trendy and fashionable products, which particularly appeal to younger customers.

Cons of Five Below Store 

  1. Quality issues: Given that less expensive products might not always be the most durable, some buyers have expressed worries about the quality of specific products.
  2. supply availability: various consumers have noticed supply shortages or trouble locating specific products due to the demand for various commodities.
  3. Store organisation: According to some consumers, the stores might occasionally be disorganised, making it challenging to find specific items.

In general, Five Below is praised for its low prices and extensive product choices. However, customers should be aware of potential quality concerns and occasional stock issues.

Franchise Deck Analysis and Overview  

Five Below is a popular American retail chain that offers a wide range of products, all priced at $5 or less. It was founded in 2002 by Tom Vellios and David Schlessinger in Philadelphia, Pennsylvania. The concept behind Five Below is to cater to tweens and teens while providing affordable products for a variety of interests.

Since its inception, Five Below has experienced significant growth, and as of now, there are nearly 1,200 stores across 40 states. The company’s success can be attributed to its unique approach to retail, which focuses on trendy products while maintaining low prices, making it an attractive shopping destination for its target demographic.

Competition Analysis of Five Below

Five Below Cost to Franchise Franchisee Fees Royalty + Ad fees Expected Profit Recoup of Capital FD Rating
Five Below  3.8/5.0
Target Franchise 3.9/5.0
Amazon Franchise $10,000 $1M-$4.5M 4.0/5.0
Macy’s Franchise $350,000-$685,000 $15,000 7% $24,8 billion 3.8/5.0
Kroger Franchise  3.7/5.0



The Franchise Deck rating for the Five Below’s franchise is 3.8/5.0.


Conclusion: Can You Buy Five Below Franchise?

Five Below has carved out a unique niche in the retail industry by catering to the specific needs and interests of tweens and teens. The company’s commitment to offering trendy products at unbeatable prices has allowed it to flourish and expand across the United States.

Five Below continues to attract entrepreneurs who recognise the potential for growth and success within this distinctive marketplace. By staying true to its core values and constantly adapting to the ever-changing preferences of its target audience, Five Below is poised to remain a popular shopping destination for value-conscious consumers for years to come.

Entrepreneurs who want to open a franchise  can look at 

  1. Target Franchise 
  2. Amazon Franchise 
  3. Macy’s Franchise 
  4. Kroger Franchise 
  5. Walmart Franchise 
  6. Trader Joe’s Franchise
  7. Wawa franchise
  8. Dollar General Franchise
  9. 7 Eleven franchise
  10. Whole Foods Franchise
  11. TJX Franchise
  12. Ben and Jerry’s Franchise

Frequently Asked Questions (FAQs)

  • Is the Five Below franchise profitable?

Five Below stores have been known for their success and profitability due to their unique business model and target audience. Profitability can vary depending on location, competition, and management.

  • Can you make money owning a Five Below?

Yes, owning a Five Below store can potentially be a profitable venture. However, as with any business, the success of a Five Below store will depend on factors such as location, effective management, and marketing efforts.

  • Is Five Below a franchise?

While Five Belows is a retail chain, it can’t be operated as a franchise as its all stores are corporately owned. 

  • How much is a Five Below franchise?

This is not a franchise so, there is no specific information available on the cost of acquiring a franchise.

  • How do Five Below franchises make money?

As Five Below was generally operated as stores, they would make money by selling products at affordable prices, typically $5 or less, targeting tweens and teens. Stores would benefit from brand recognition, marketing support, and buying power of the larger retail chain. Profits would come from the difference between the cost of goods and the selling price, as well as any additional revenue streams, such as loyalty programs or promotional events.

Published On: May 15th, 2023 / Categories: Blog /

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