Is a Fat Shack franchisee currently required to conduct local advertising for their restaurant?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
13.4. Local Advertising
FSI currently does not require its franchisees to conduct any specific local advertising of their FAT SHACK Restaurants, although FSI recommends that that they do advertise their Restaurant businesses. Although FSI currently does not require Franchisee to expend a specific amount or
percentage of its Gross Sales on advertising, it reserve the right to do so in the future. In that event, Franchisee will be required to submit regular reports to FSI accounting for the use of these funds. FSI also does not currently require its franchisees to participate in a local or regional advertising cooperative, although it reserve the right to do so in the future. FSI has not established any rules or regulations related to local or regional advertising cooperatives. If a local or regional advertising program in Franchisee's area is established, FSI may allocate a portion of any required local advertising amounts to the regional advertising program. FSI is not required to spend any amount on advertising in the area or territory where Franchisee's FAT SHACK Restaurant is located.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, franchisees are not currently required to conduct specific local advertising for their restaurants. However, Fat Shack recommends that franchisees do advertise their restaurant businesses. While there isn't a mandatory amount or percentage of gross sales that franchisees must spend on advertising right now, Fat Shack retains the right to implement such a requirement in the future. If this happens, franchisees would need to submit regular reports to Fat Shack detailing how these funds are used.
Fat Shack also does not currently mandate participation in a local or regional advertising cooperative, but they reserve the right to do so in the future. No specific rules or regulations are established for local or regional advertising cooperatives. If a local or regional advertising program is established in a franchisee's area, Fat Shack may allocate a portion of any required local advertising amounts to that regional program.
It's important to note that Fat Shack is not obligated to spend any amount on advertising in the area or territory where a franchisee's Fat Shack Restaurant is located. This means the franchisee may need to take on the responsibility of local advertising to promote their specific location, even though it is not currently required. Franchisees must also obtain Fat Shack's prior written approval for all written advertising or other marketing or promotional programs not previously approved.