What fees does Fat Shack charge for reviewing more than two leases or purchase agreements?

According to Fat Shack's 2025 Franchise Disclosure Document, Fat Shack must approve any lease or purchase agreement for your restaurant location before you sign it. Fat Shack does not charge for the first two lease or purchase agreement reviews. However, if Fat Shack is required to approve more than two leases or purchase agreements, they will charge a fee plus out-of-pocket costs. These costs cover Fat Shack's lost opportunity, legal expenses, and other expenses incurred for each additional review after the first two.

This policy means that franchisees need to carefully consider potential locations and negotiate leases effectively to minimize the chances of needing multiple reviews. The additional fees for lease reviews can add to the initial investment costs, especially if the franchisee is indecisive or encounters difficulties in securing a suitable location that meets Fat Shack's approval. Franchisees should factor in potential costs for additional reviews when budgeting for their initial investment.

It is important for prospective franchisees to understand what constitutes a 'review' and what specific factors might trigger the need for multiple reviews. For example, revisions to a lease agreement might count as a separate review. Franchisees should communicate proactively with Fat Shack during the site selection and lease negotiation process to avoid unnecessary fees and ensure compliance with Fat Shack's requirements. A signed copy of the lease must be delivered to Fat Shack within 15 days after signing.