When is the Fat Shack development fee due?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Column 3 | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| Method of Payment | ||||
| Development Fee | $5,000 - $15,000 Lump Sum | When you sign Development Agreement Us |
Source: Item 7 — Estimated Initial Investment (FDD pages 18–22)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the development fee, which ranges from $5,000 to $15,000, is due when you sign the Development Agreement with Fat Shack. This fee grants you the right to develop one to three Fat Shack restaurants, in addition to your initial Fat Shack Restaurant. The development fee is paid directly to Fat Shack.
It's important to note that the initial franchise fee for each subsequent Fat Shack restaurant opened under the Development Agreement is $18,000. Fat Shack will apply $5,000 of the development fee for each additional restaurant towards this initial franchise fee. The remaining balance of the initial franchise fee is due upon the earlier of the execution of the Franchise Agreement for that restaurant or the deadline for signing the Franchise Agreement for that particular Fat Shack restaurant.
Prospective franchisees should carefully consider the implications of the development agreement, including the number of restaurants they plan to develop and the associated fees and deadlines. Understanding these financial obligations is crucial for making an informed decision about investing in a Fat Shack franchise.