What are some examples of expenditures that the Marketing and Promotion Fund may be used for by Fat Shack?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
follows:
a. The Marketing and Promotion Fund will be administered by FSI and may be used for production and placement of media advertising, direct response literature, direct mailings, brochures, radio and television advertising, collateral advertising material, surveys of advertising effectiveness, development of Internet websites, or other advertising or public relations expenditures relating to advertising FAT SHACK Restaurants services and products, providing professional services, materials, and personnel to support the marketing function, and creating, producing, and implementing websites for FSI and/or its franchisees. FSI will direct all advertising and promotional programs, with the sole and absolute right of approval over agencies, spokespersons, creative concepts, materials, media placements and allocations used in the programs. Franchisee agrees that the Marketing and Promotion Fund is intended to maximize
general public recognition and acceptance of the Marks for the benefit of all FAT SHACK franchisees (the "System"), that it may be used for marketing, advertising, production and media expenses, and that FSI and its designees undertake no obligation in administering the Marketing and Promotion Fund to ensure that Franchisee benefits directly or pro rata from the placement of advertising.
- b.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the Marketing and Promotion Fund is used to promote the Fat Shack brand and system. The fund can cover various advertising and public relations expenditures. These include the production and placement of media advertising, direct response literature, direct mailings, brochures, radio and television advertising, and collateral advertising material.
Additionally, the fund may be used for surveys of advertising effectiveness and the development of Internet websites. It also supports providing professional services, materials, and personnel to aid the marketing function. Furthermore, the fund can be used to create, produce, and implement websites for both Fat Shack itself and its franchisees.
Fat Shack retains control over all advertising and promotional programs, including the approval of agencies, spokespersons, creative concepts, materials, media placements, and allocations. The goal of the Marketing and Promotion Fund is to maximize public recognition and acceptance of the Fat Shack marks for the benefit of all franchisees. However, Fat Shack does not guarantee that any franchisee will directly or proportionally benefit from the advertising efforts.