Is a Fat Shack franchisee currently required to conduct local advertising?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Local Advertising. Currently, we do not require franchisees to conduct any specific advertising of their FAT SHACK Restaurants, although we recommend that that they do advertise their businesses. Although we currently do not require you to expend a specific amount or percentage of your Gross Sales on advertising, we reserve the right to do so in the future. In that event, you will be required to submit regular reports to us accounting for the use of these funds. If a Regional Advertising program in your area is established, as discussed below, we may allocate a portion of your local advertising amounts to the Regional Advertising program.
If you propose to use any advertising not previously developed or approved by us, you must submit the proposed advertising to us for review and approval or, if necessary, modification, at your cost. You are responsible for the costs of printing all materials and any proposed supplier of printing services must be first approved by us. All advertising and promotion of your FAT SHACK Restaurant must also be in such media and of such type and format as we must first approve in writing, and it must be conducted in a dignified manner and must conform to the standards and requirements as we or our designated vendor may specify. Any proposed written advertising or a description of a marketing or promotional program not previously approved by us must be submitted to us at least 10 days prior to publication, broadcast or use.
We do not require Franchisees to participate in a local or regional advertising cooperative, although we reserve the right to do so in the future. We have not established any rules or regulations related to local or regional advertising cooperatives.
We are not required to spend any amount on advertising in area or territory where your FAT SHACK Restaurant is located.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 28–36)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, franchisees are not currently required to conduct local advertising for their Fat Shack restaurants. However, Fat Shack does recommend that franchisees advertise their businesses. While there isn't a current requirement to spend a specific amount or percentage of gross sales on advertising, Fat Shack retains the right to implement such a requirement in the future. If this occurs, franchisees will need to submit regular reports detailing how these funds are used.
Fat Shack also reserves the right to establish a regional advertising program. If a regional advertising program is established in a franchisee's area, a portion of their local advertising funds may be allocated to this regional program. Any advertising materials not previously developed or approved by Fat Shack must be submitted for review, and the franchisee is responsible for the costs of printing these materials.
All advertising and promotion must be in approved media, of an approved type and format, conducted in a dignified manner, and conform to Fat Shack's standards. Proposed written advertising or marketing programs must be submitted at least 10 days before their intended use. Fat Shack does not require franchisees to participate in local or regional advertising cooperatives, but reserves the right to do so in the future. Fat Shack is not required to spend any amount on advertising in the area or territory where a franchisee's Fat Shack Restaurant is located.