Does Fat Shack currently have any purchasing or distribution cooperatives?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
We have no purchasing or distribution cooperatives at the current time. We have negotiated a pricing arrangement with our designated supplier for those items that you will purchase pursuant to the Participation Agreement. We may establish additional pricing programs with certain suppliers based on volumes purchased in the future. Periodically, we may negotiate purchase arrangements with suppliers for the benefit of our franchisees. However, you should not rely on the continued availability of any particular pricing or distribution arrangement, or the availability of any particular product or brand in deciding whether to purchase the franchise. We have the right to receive payments, rebates, commissions, incentives, or other benefits from suppliers on account of their dealings with you and other franchisees.
We have an agreement with one of our approved suppliers of products sold to FAT SHACK Restaurants, including Franchisee Restaurants. During the fiscal year ended December 31, 2024, we received $0.22 per case as a result of franchisee purchases from that supplier. In the future, we may, in our discretion, retain credits or amounts from other suppliers based on any volume discounts, rebates, commissions, incentives, or other benefits received as a result of your purchases or contribute them to the Marketing and Promotion Fund, or pass those credits on to franchisees in such manner as we determine in our sole discretion.
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, Fat Shack does not currently have any purchasing or distribution cooperatives. However, Fat Shack has negotiated a pricing arrangement with its designated supplier for items franchisees will purchase under the Participation Agreement. Fat Shack may establish additional pricing programs with certain suppliers based on purchase volumes in the future and may periodically negotiate purchase arrangements with suppliers for the benefit of franchisees.
It is important to note that Fat Shack franchisees should not rely on the continued availability of any particular pricing or distribution arrangement, or the availability of any particular product or brand when deciding whether to purchase the franchise. Fat Shack retains the right to receive payments, rebates, commissions, incentives, or other benefits from suppliers based on their dealings with franchisees.
For the fiscal year ended December 31, 2024, Fat Shack received $0.22 per case as a result of franchisee purchases from one supplier. In the future, Fat Shack may retain credits or amounts from other suppliers based on volume discounts, rebates, commissions, incentives, or other benefits received from franchisee purchases, contribute them to the Marketing and Promotion Fund, or pass those credits on to franchisees, at their discretion.