Who bears the cost of participating in Fat Shack promotional campaigns?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as prohibited or limited by law or unless we exempt you from a particular promotion, you must, at your sole cost, fully participate in all promotional campaigns, prize contests, special offers, discount programs, including deal-of-the-day and crowdsourcing programs, and other programs, whether national, regional, or local in nature, which we prescribe. In addition, at your sole cost, you must honor any coupons, gift certificates, gift cards, discounts, or other authorized promotional offers that we prescribe for the franchise system, unless we agree otherwise. In our discretion, we may create and make available to the public a mobile device application for the FAT SHACK system, which may incorporate
these type of promotional programs and offers, which you must participate in and honor at your sole cost. We may impose additional conditions and requirements related to the application when operational.
We require that you purchase all advertising, promotional, and point-of purchase materials from either us or our designated vendor. We retain the right to develop and control all advertising using our Marks on the Internet. We reserve the right, upon 30 days prior written notice to you, to require that you participate in electronic advertising by creating, customizing or providing access to a linked web page or otherwise. All advertising, promotional, and point-of-purchase materials purchased from us must be paid by automatic transfer as described in Footnote 3 of Item 6, unless we agree to another form of payment.
Purchasing Arrangements
We have no purchasing or distribution cooperatives at the current time.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 22–26)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, franchisees are responsible for the costs associated with participating in promotional campaigns. Specifically, the franchisee must participate fully in all promotional campaigns, prize contests, special offers, and discount programs, whether national, regional, or local, at their sole cost, unless exempted by Fat Shack or prohibited by law. This includes honoring coupons, gift certificates, gift cards, discounts, or other authorized promotional offers prescribed by Fat Shack, unless otherwise agreed.
Fat Shack may also introduce a mobile device application for promotional programs, which franchisees must participate in and honor at their sole cost. Franchisees are required to purchase all advertising, promotional, and point-of-purchase materials from Fat Shack or its designated vendor. These materials must be paid for by automatic transfer, unless another payment method is agreed upon.
This means that a Fat Shack franchisee will need to budget for these ongoing marketing expenses. It is common in franchising for franchisees to contribute to marketing funds or bear the costs of local promotions, but the FDD makes it clear that Fat Shack franchisees are directly responsible for the costs of nearly all promotional activities. This could impact the franchisee's profitability and requires careful planning to ensure participation in these campaigns is financially viable.