Is a Fat Shack franchisee currently required to participate in a local or regional advertising cooperative?

According to Fat Shack's 2025 Franchise Disclosure Document, franchisees are not currently required to participate in a local or regional advertising cooperative. However, Fat Shack retains the right to mandate participation in the future. The FDD also states that Fat Shack has not established any rules or regulations related to local or regional advertising cooperatives.

Even though participation is not currently mandatory, Fat Shack recommends 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 reserves the right to implement such a requirement in the future. If this occurs, franchisees will need to submit regular reports accounting for the use of these advertising funds. Additionally, if a regional advertising program is established in the franchisee's area, a portion of their local advertising funds may be allocated to that regional program.

If a franchisee proposes to use advertising materials not already approved by Fat Shack, they must submit the materials for review, modification, or approval, bearing the associated costs. The franchisee is responsible for the costs of printing all advertising materials, and any proposed printing service supplier must be approved by Fat Shack. All advertising and promotion must be in a format approved in writing by Fat Shack and conducted in a dignified manner, conforming to the standards and requirements specified by Fat Shack or its designated vendor. Any written advertising or marketing program descriptions not previously approved must be submitted at least 10 days before their intended use.