How is the amount of the On-site Opening Assistance Fee determined for a Fat Shack franchise?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| On-site Opening Assistance Fee1 | $195 per day for each day the on-site opening assistance is provided | As incurred | Only payable if our representatives must travel more than 100 miles and incur room and board expenses in providing this assistance. |
Source: Item 6 — Other Fees (FDD pages 15–18)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the On-site Opening Assistance Fee is determined by a daily rate. The fee is $195 per day for each day the on-site opening assistance is provided to the franchisee. This fee covers the support provided by Fat Shack representatives during the opening phase of the franchise.
However, this fee is only payable if Fat Shack's representatives must travel more than 100 miles to provide the assistance and incur room and board expenses. This condition suggests that Fat Shack aims to cover its representatives' travel and accommodation costs when providing on-site support for franchise openings that are not local to them.
This fee structure is fairly standard in the franchise industry, where franchisors often charge for on-site assistance to cover their expenses. Prospective Fat Shack franchisees should factor this potential cost into their initial investment, especially if they are opening a location far from Fat Shack's base of operations. It's important to discuss with Fat Shack the anticipated duration of on-site assistance and the potential for these fees to be incurred.