What expenses are the responsibility of the franchisee in connection with attending the Fat Shack initial training program?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee (or, if Franchisee is a corporation, partnership, or limited liability company, its managing shareholder, partner or member ("Managing Owner")) and the person designated by Franchisee to assume primary responsibility for the management of the FAT SHACK Restaurant ("General Manager") must attend and successfully complete the initial training program which is offered by FSI at one of FSI's designated training facilities. The Managing Owner and General Manager shall be set forth in the Addendum. Up to three individuals (including the Managing Owner and General Manager) are eligible to participate in FSI's initial training program without charge of a tuition or fee. Franchisee shall be responsible for any and all traveling and living expenses incurred in connection with attendance at the training program, as well as wages or salaries, if any, of the person(s) receiving training. Franchisee must purchase worker's compensation insurance for each employee of Franchisee who attends training and Franchisee must deliver proof of such insurance coverage to FSI before FSI will train such Franchisee or its Managing Owner, and Franchisee's General Manager, both must successfully complete the initial training program prior to Franchisee's commencement of operation of its FAT SHACK Restaurant. FSI reserves the right to waive all or a portion of the training program or alter the training schedule. In addition to successfully completing the initial training program conducted by FSI, FSI reserves the right to require Franchisee, or Franchisee's General Manager, and each new General Manager throughout the term of this Agreement, to attend and pass a designated food safety and sanitation course, which may be offered by FSI or by a third party unrelated to FSI before Franchisee shall be allowed to commence operating the FAT SHACK Restaurant. Franchisee shall be responsible for tuition and for all traveling and living expenses of its personnel incurred in connection with attendance at the food safety course.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the franchisee is responsible for specific expenses related to the initial training program. While Fat Shack does not charge tuition or fees for up to three individuals (including the Managing Owner and General Manager) to attend the initial training program, the franchisee must cover all traveling and living expenses incurred by the attendees.
In addition to travel and living costs, the franchisee is also responsible for any wages or salaries paid to the individuals while they are undergoing training. Furthermore, Fat Shack requires the franchisee to purchase worker's compensation insurance for each employee attending the training and provide proof of this insurance before training commences.
Moreover, if Fat Shack requires the franchisee or their General Manager to attend a designated food safety and sanitation course, the franchisee is responsible for the tuition and all associated travel and living expenses for their personnel. This comprehensive allocation of costs ensures that Fat Shack covers the direct training itself, while the franchisee bears the logistical and employment-related expenses.