On what day of the week is the Fat Shack Marketing and Promotion Fee payable?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Marketing and Promotion Fund Contribution. We currently do not collect a Marketing and Promotion Fee, nor have we established a National Marketing and Promotion Fund or program. However, upon not less than 30 days' notice, we may require you to remit to us a Marketing and Promotion Fee of up to 1½ percent of Gross Sales. We may change the percentage of the Marketing and Promotion Fee upon 30 days' notice, but not above 1½ percent of Gross Sales. The Marketing and Promotion Fee is due to us along with your 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 Marketing and Promotion Fee will be placed in a separate account ("Marketing and Promotion Fund") will be accounted for separately. All company-owned and affiliate-owned FAT SHACK Restaurants will pay into the Marketing and Promotion Fund on an equal percentage basis with all franchised FAT SHACK Restaurants.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 28–36)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the Marketing and Promotion Fee, if implemented, is due along with the Royalty Fee payment. Both fees are payable weekly by automatic transfer on Tuesday of each week. This payment is based on the Gross Sales from the previous week.
Currently, Fat Shack does not collect a Marketing and Promotion Fee, nor have they established a National Marketing and Promotion Fund or program. However, Fat Shack retains the right to implement this fee with at least 30 days' notice to franchisees. The fee could be up to 1½ percent of Gross Sales, and Fat Shack may change the percentage with 30 days' notice, but it will not exceed 1½ percent of Gross Sales.
If the Marketing and Promotion Fee is established, the funds will be placed in a separate account and used for various marketing and advertising activities, including commercial advertising, agency costs, video and audio advertisements, direct mail, radio and internet advertising, gift card and loyalty card programs, public relations, and market research. Fat Shack may also use the fund for product development and menu changes. Company-owned and affiliate-owned Fat Shack Restaurants will contribute to the Marketing and Promotion Fund on an equal percentage basis with franchised locations.
Fat Shack may reimburse itself from the Marketing and Promotion Fund for administrative costs, salaries, and overhead expenses related to administering the fund and its marketing programs. Any unspent funds at the end of the year will be carried over to the next year's expenses. Fat Shack does not have a fiduciary obligation to franchisees regarding the administration of the Marketing and Promotion Fund.