Does the Fat Shack Gross Sales definition include sales made for cash?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
- These charts only show "Gross Sales," which is defined as sales of any kind for all services or products purchased from or through the applicable Unit, including sales made for cash or upon credit, and regardless of whether sales occur at the site of the Unit or off-site, but excluding discounts, sales taxes, or other similar taxes and credits. It also includes delivery fees and revenue from the redemption of FAT SHACK gift certificates, customer loyalty cards, gift cards and other prepaid cards.
Source: Item 19 — Financial Performance Representations (FDD pages 46–49)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the definition of Gross Sales includes sales made for cash. The FDD defines Gross Sales as sales of any kind for all services or products purchased from or through the applicable Unit, including sales made for cash or upon credit.
This definition is important for prospective Fat Shack franchisees because it clarifies what revenue is included when calculating royalties and other fees payable to the franchisor. By including cash sales in the Gross Sales definition, Fat Shack ensures that all revenue streams are accounted for, regardless of the payment method. This is a standard practice in franchising, as it simplifies accounting and ensures transparency between the franchisee and franchisor.
Furthermore, the definition also specifies what is excluded from Gross Sales, such as discounts, sales taxes, and other similar taxes and credits. It also includes delivery fees and revenue from the redemption of FAT SHACK gift certificates, customer loyalty cards, gift cards and other prepaid cards. This provides further clarity for franchisees in calculating their Gross Sales and determining their financial obligations to Fat Shack.