Does Fat Shack currently use any public figures to promote its franchise?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
FSI may in its sole discretion, conduct regional, national or international advertising to promote the FAT SHACK brand and system generally, and charge its franchisees for this service. FSI reserves the right, upon not less than 30 days' notice to Franchisee, to require Franchisee to pay to FSI an advertising, marketing and promotion fee ("Marketing and Promotion Fee") in an amount designated in the notice, up to a maximum of 1½ percent of the total amount of Franchisee's weekly Gross Sales. FSI may change the percentage of the Marketing and Promotion Fee upon 30 days' notice to Franchisee, but it shall not increase the Marketing and Promotion Fee above 1½ percent of Franchisee's weekly Gross Sales during the term of this Agreement. The Marketing and Promotion Fee, once due, is payable weekly, concurrent with the payment of the Royalty in accordance with Article 5 above, by electronic transfer of funds pursuant to the Authorization Agreement for preauthorized payment described in Section 5.4, and is nonrefundable once it is paid. The Marketing and Promotion Fee is also subject to the same administrative fee, late charge and interest as the Royalty Fee, as set forth above. If and when collected, the Marketing and Promotion Fee will be deposited into a separate bank account, commercial account or savings account ("Marketing and Promotion Fund"), which will be administered as follows:
a. The Marketing and Promotion Fund will be administered by FSI and may be used for production and placement of media advertising, direct response literature, direct mailings, brochures, radio and television advertising, collateral advertising material, surveys of advertising effectiveness, development of Internet websites, or other advertising or public relations expenditures relating to advertising FAT SHACK Restaurants services and products, providing professional services, materials, and personnel to support the marketing function, and creating, producing, and implementing websites for FSI and/or its franchisees. FSI will direct all advertising and promotional programs, with the sole and absolute right of approval over agencies, spokespersons, creative concepts, materials, media placements and allocations used in the programs. Franchisee agrees that the Marketing and Promotion Fund is intended to maximize
Source: Item 18 — Public Figures (FDD page 46)
What This Means (2025 FDD)
The 2025 Fat Shack Franchise Disclosure Document does not explicitly state whether Fat Shack uses public figures for advertising and promotion. However, the FDD does outline Fat Shack's approach to advertising and marketing, including the potential for a Marketing and Promotion Fund.
According to the FDD, Fat Shack may conduct regional, national, or international advertising to promote the brand and can charge franchisees a Marketing and Promotion Fee of up to 1½ percent of weekly Gross Sales for this purpose. The Marketing and Promotion Fund can be used for various advertising expenditures, and Fat Shack has the sole right of approval over agencies, spokespersons, creative concepts, materials, media placements, and allocations used in the programs. This suggests that while the use of public figures is not explicitly mentioned, Fat Shack retains the right to engage them for promotional activities if they deem it appropriate.
Franchisees are required to adhere to Fat Shack's advertising standards and participate in promotional campaigns. They must also obtain Fat Shack's approval for any advertising materials they create. This ensures that all marketing efforts align with the brand's overall strategy and image. Prospective franchisees should inquire with Fat Shack about their specific plans for using public figures in advertising and how these efforts will be funded and implemented.