Does the 'Additional Funds' estimate for a Fat Shack franchise include the franchisee's salary?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
- Note 18: Additional Funds.
The above chart covers a three-month period.
This estimate includes your pre-operational expenses that are not listed above, as well as additional funds necessary for the first three months of your FAT SHACK Restaurant operations.
This item includes a variety of expenses and working capital items during your start-up phase such as: travel and living expenses associated with the initial training program; advertising and promotional expenses and materials; employee salaries; and other miscellaneous costs.
However, this item excludes your salary or other amounts payable to you.
We relied on our principals' more than 27 combined years of experience in operating FAT SHACK Restaurants of the type being offered under this Disclosure Document when preparing these figures. You should review these figures carefully with a business advisor before making any decision to purchase a franchise.
Source: Item 7 — Estimated Initial Investment (FDD pages 18–22)
What This Means (2025 FDD)
According to the 2025 Fat Shack Franchise Disclosure Document, the 'Additional Funds' estimate does not include the franchisee's salary. The estimate covers a three-month period and accounts for pre-operational expenses not listed elsewhere, along with funds needed for the first three months of restaurant operations. These expenses include travel and living expenses for the initial training program, advertising and promotional materials, and employee salaries.
The FDD specifies that while employee salaries are included in the additional funds estimate, the franchisee's own salary or any other payments to the franchisee are excluded. The estimated range for these additional funds is between $15,000 and $30,000.
This means that prospective Fat Shack franchisees need to ensure they have sufficient capital to cover their personal living expenses during the initial three-month period, in addition to the estimated initial investment. The FDD relies on the principals' 27 years of experience to create these estimates, but it is recommended that franchisees carefully review these figures with a business advisor before making any decisions.