In 2024, how many Fat Shack company-owned outlets were sold to franchisees?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
| Column 1 | Column 2 | Column 3 | Column 4 | Column 5 | Column 6 | Column 7 | Column 8 |
|---|---|---|---|---|---|---|---|
| State | Year | Outlets at Start of the Year | Outlets Opened | Outlets Reacquired from Franchisee | Outlets Closed | Outlets Sold to Franchisee | Outlets at End of the Year |
| 2022 | 3 | 0 | 2 | 0 | 0 | 5 | |
| Colorado | 2023 | 5 | 0 | 0 | 0 | 0 | 5 |
| 2024 | 5 | 0 | 0 | 0 | 1 | 4 | |
| 2022 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Illinois | 2023 | 0 | 0 | 1 | 0 | 0 | 1 |
| 2024 | 1 | 0 | 0 | 0 | 0 | 1 | |
| 2022 | 3 | 0 | 2 | 0 | 0 | 5 | |
| Totals | 2023 | 5 | 0 | 1 | 0 | 0 | 6 |
| 2024 | 6 | 0 | 0 | 0 | 1 | 5 |
Source: Item 20 — Outlets and Franchisee Information (FDD pages 49–52)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, in 2024, one company-owned Fat Shack location was sold to a franchisee. This is reflected in Item 20, which tracks the status of both franchised and company-owned outlets over the past three years. The table shows the changes in outlet numbers, including those reacquired or sold.
For a prospective franchisee, this indicates that Fat Shack occasionally transfers company-owned locations to franchisees. Acquiring an existing company-owned store could offer certain advantages, such as an established customer base and operational history. However, it's important to investigate the reasons behind the sale and the performance of the location before committing to the purchase.
It's also worth noting that the overall number of company-owned Fat Shack locations decreased by one in 2024, from six to five. This suggests a potential shift in the company's strategy towards franchising, which could present opportunities for new franchisees to expand the brand's presence. Reviewing the performance of transferred locations and understanding Fat Shack's criteria for selecting stores to franchise would be prudent steps for anyone considering this option.