What expenses can FSI be reimbursed for from the Fat Shack Marketing and Promotion Fund?

According to Fat Shack's 2025 Franchise Disclosure Document, Fat Shack, Inc. (FSI) can receive reimbursement from the Marketing and Promotion Fund for specific expenses related to administering the fund. These reimbursable expenses include overhead, employee salaries for services provided in administering the fund, and rent for office space used by these employees.

Additionally, Fat Shack has the option to place advertising themselves instead of hiring an advertising agency. If Fat Shack chooses to do so, they are entitled to receive a fee for these services. However, this fee cannot exceed the highest rate charged for similar services by a recognized advertising agency not owned by Fat Shack or its officers, directors, or employees. This fee is in addition to reimbursement for costs incurred by Fat Shack.

This arrangement allows Fat Shack to manage the Marketing and Promotion Fund and be compensated for the direct costs and efforts involved. However, it's important for prospective franchisees to note that Fat Shack has the right to retain any unspent funds from the Marketing and Promotion Fees for use in subsequent years, and Fat Shack has no fiduciary obligation to franchisees in connection with the operation of the Marketing and Promotion Fund.