Besides a fee, what other costs will Fat Shack charge for additional lease reviews?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
We must approve any lease or, if applicable, any purchase agreement for your FAT SHACK Restaurant before you sign any of these agreements. We do not charge for up to two lease or purchase agreement reviews. If we are required to approve more than two leases or purchase agreements, we charge you a fee plus our out-of-pocket costs for our lost opportunity and legal and other expenses incurred for this additional review for each lease or purchase agreement after the first two.
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, in addition to a fee, if Fat Shack is required to approve more than two leases or purchase agreements, the franchisee will be responsible for Fat Shack's out-of-pocket costs. These costs cover Fat Shack's lost opportunity, legal expenses, and other expenses incurred for each additional review after the first two.
This means that prospective Fat Shack franchisees should carefully consider their site selection process to minimize the need for multiple lease reviews. The costs associated with these additional reviews can add up quickly, especially if legal and other professional fees are involved. It is in the franchisee's best interest to find a suitable location early in the process to avoid these extra expenses.
Fat Shack's requirement for lease approval is a common practice in franchising, as it allows the franchisor to ensure that the location meets their standards and protects their brand. However, the added cost for additional reviews is something franchisees should be aware of and factor into their budget. Seeking legal counsel to review the lease agreement is also recommended, although the franchisee will bear that expense separately.