What is the estimated low and high cost for lease costs for a Fat Shack location?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
| Column 1 | Column 2 | Column 3 | Column 4 | Column 5 | |
|---|---|---|---|---|---|
| Type of expenditure | Amount (Low) | Amount (High) | Method Of Payment | When Due | To Whom Payment Is To Be Made |
| Initial Franchise Fee | $35,000 | $35,000 | Lump Sum | At signing of Franchise | Us |
| (See Note 1) | Agreement | ||||
| Lease Costs | $4,000 | $15,000 | As arranged | Before Opening | Landlord |
| (See Note 2) |
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 estimated initial cost for lease costs ranges from $4,000 to $15,000. These costs are paid to the landlord and are due before opening the Fat Shack location.
The FDD notes that a Fat Shack restaurant typically requires between 1,200 to 2,500 square feet of space and is usually located in a mall, strip center, or office or retail building, often near a college campus. The document also mentions that smaller leased spaces tend to have higher rent rates on a price per square foot basis. These lease costs can vary significantly from location to location.
Prospective franchisees should carefully consider the location and size of the space they intend to lease, as these factors can greatly impact the overall cost. It is also important to note that the estimated lease costs do not account for potential lease concessions, such as free rent, which may be negotiated with landlords. Reviewing potential lease agreements with a qualified business advisor is recommended to ensure a full understanding of all associated costs and terms.