What is the amount of the Successor Franchise Fee for a Fat Shack franchise?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
oyees and agents;
- e. Pays a successor franchise fee ("Successor Franchise Fee") in the amount of $6,000.00 upon each exercise of the successor franchise rights and any other fees set forth in the successor franchise rider to cover FSI's expenses related to reviewing Franchisee's operations and approving the option. The Successor Franchise Fee will be due and payable upon execution of FSI's then current Franchise Agreement and will be nonrefundable under all circumstances once paid. The Successor Franchise Fee is paid in lieu of an additional initial
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, a franchisee must pay a Successor Franchise Fee of $6,000 if they exercise their right to renew their franchise agreement for additional terms. This fee is payable upon execution of Fat Shack's current Franchise Agreement and is nonrefundable. The Successor Franchise Fee is paid in place of an additional initial franchise fee.
To be eligible for a successor franchise, the franchisee must meet several prerequisites. These include executing the current form of the Franchise Agreement, which may have different terms than the original agreement, remaining in compliance with the existing agreement, agreeing to upgrade and remodel the Fat Shack restaurant to meet current standards, and executing a successor franchise rider that includes a general release of claims against Fat Shack.
Additionally, the franchisee or their General Manager must successfully complete a refresher operations training program, unless this requirement is waived by Fat Shack. The franchisee is responsible for all travel and living expenses associated with this training. Meeting all these conditions, including paying the $6,000 Successor Franchise Fee, allows the franchisee to continue operating their Fat Shack restaurant under a new franchise term.