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There was indeed five if I remember correctly. Also, I asked before in the PM about the Magic Games if we could do 4 - 5 since not every guild we have has a lot of members, so we went 4. But who knows, it might change if we have enough people to have teams of five.
Hmm. Frenzy Plant and Phoenix Wing can definitely do five. If you don't count lady Jack or Prince, then Dragon Fang has only two. Goldenlaws has four. But then again I think there was a rule against dark guilds joining, though that didn't stop Raven Tail. I don't know who else might be participating.
Character's aren't difficult to make, though. We've got the Fairy Tail (protag team) and Lamia Scale (rivalry competition) down via Phoenix Wing and and Frenzy Plant. Goldenlaws could easily take the position of Raven Tail (dark guild antagonists), and I'm kinda seeing Dragon Fang as Blue Pegasus (also rivalry competition). With those out of the way, the only ones left in the anime were ones that never really stood a chance--Mermaid Heel, Quatro Cerberus, Twilight Ogre, so on. I don't know who'd take the position of deadly-serious competition from Sabertooth.
I might be willing to whip up another guild, the one that Fleo previously belonged to, that split because of a sort of civil war as I mentioned in posts previous. I really enjoyed making Frenzy Plant. That's not to say that I'm going to put the same amount of effort into a new guild as Frenzy Plant however.