What is the definition of 'Gross Sales' for a Fat Shack unit?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
- These charts only show "Gross Sales," which is defined as sales of any kind for all services or products purchased from or through the applicable Unit, including sales made for cash or upon credit, and regardless of whether sales occur at the site of the Unit or off-site, but excluding discounts, sales taxes, or other similar taxes and credits. It also includes delivery fees and revenue from the redemption of FAT SHACK gift certificates, customer loyalty cards, gift cards and other prepaid cards.
Source: Item 19 — Financial Performance Representations (FDD pages 46–49)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, Gross Sales are defined as the total revenue generated from all services and products sold at or through a Fat Shack unit. This includes cash and credit sales, regardless of whether the sales occur on-site or off-site.
Specifically, the Gross Sales figure includes delivery fees and revenue from the redemption of Fat Shack gift certificates, customer loyalty cards, gift cards, and other prepaid cards. However, the definition explicitly excludes discounts, sales taxes, and other similar taxes and credits. This means that these items are not factored into the Gross Sales calculation.
It is important to note that the Gross Sales figures presented in Item 19 of the FDD do not represent a complete financial picture. The figures do not include the cost of goods sold, operating expenses, non-operating income or expenses, or the resulting net profit. Therefore, prospective franchisees should not consider the Gross Sales figures as a statement of profit and loss or a statement of net earnings. Instead, they should review other items in the FDD, such as Items 5, 6, and 7, to understand the fees and expenses associated with operating a Fat Shack restaurant.