On what day of the week is the Fat Shack Royalty fee due?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
| Column 1 | Column 2 | Column 3 | Column 4 |
|---|---|---|---|
| Type of Fee | Amount | Due Date | Remarks |
| Royalty1 | 6% of your Gross Sales2 | Payable weekly on Tuesday of each week based on the prior week's Gross Sales | The Royalty is for the ongoing grant of the rights to use the Marks and Licensed Methods, and on-going support. We will debit your bank account for the Royalty.3 You must meet minimum Sales Quota. See Item 12. |
| Marketing and Promotion Fee1 | None, but we reserve the right to charge up to 1½% of your Gross Sales2 | Payable with the Royalty Fee | We may collect a Marketing and Promotion Fee starting upon 30 days' notice to you. Once commenced, we will debit your bank account for amounts due.3 We may reallocate all or a portion of this fee to a Regional Advertising Program if one is established in your region. You must meet minimum Sales Quota. See Item 12. |
Source: Item 6 — Other Fees (FDD pages 15–18)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the Royalty fee is due weekly on Tuesdays. This fee is calculated as 6% of the Gross Sales from the previous week. Fat Shack will automatically debit this Royalty fee from the franchisee's bank account.
In addition to the Royalty fee, Fat Shack reserves the right to charge a Marketing and Promotion Fee of up to 1½% of Gross Sales, which would also be payable weekly on Tuesday. Franchisees will receive 30 days' notice before this Marketing and Promotion Fee is implemented. Like the Royalty fee, Fat Shack will debit the Marketing and Promotion Fee from the franchisee's bank account.
It is important for prospective Fat Shack franchisees to understand that they must sign documents allowing Fat Shack to debit their bank account for these fees. If a franchisee changes banks, they are required to notify Fat Shack within one day and provide new banking information within three days to ensure uninterrupted automatic payments. Failure to comply with the Franchise Agreement could result in additional fees and penalties.