Will company-owned Fat Shack Restaurants pay into the Marketing and Promotion Fund?

According to Fat Shack's 2025 Franchise Disclosure Document, all company-owned and affiliate-owned Fat Shack restaurants will contribute to the Marketing and Promotion Fund on an equal percentage basis with all franchised Fat Shack restaurants. This fund is currently not being collected, nor has it been established. However, Fat Shack may require franchisees to remit a Marketing and Promotion Fee of up to 1½ percent of Gross Sales, with a 30 day notice.

The Marketing and Promotion Fee is due along with the Royalty Fee payment, payable weekly by automatic transfer on Tuesday of each week, based on the amount of Gross Sales in the previous week. The funds will be placed in a separate account and will be accounted for separately. Fat Shack will administer the Marketing and Promotion Fund in its sole discretion and may use the fund for various advertising and marketing activities, product development, and menu changes.

Fat Shack may reimburse itself from the Marketing and Promotion Fund for administrative costs, salaries, and overhead expenses related to the administration of the fund and its marketing programs. The Marketing and Promotion Fund may borrow from Fat Shack or other lenders to cover deficits or invest any surplus for future use. Any amounts remaining in the fund at the end of each year accrue and are applied toward the next year's expenses. Franchisees may request an annual unaudited financial statement for the Marketing and Promotion Fund that indicates how the fund has been spent during the previous year.