Does the Fat Shack Gross Sales definition include sales made upon credit?

According to Fat Shack's 2025 Franchise Disclosure Document, the definition of Gross Sales includes sales made upon credit. Specifically, Gross Sales encompasses all sales of services or products purchased from or through the Fat Shack unit, whether the sales are made for cash or on credit. This definition also includes sales made at the unit's location or off-site. However, the Gross Sales figure excludes 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.

For a prospective Fat Shack franchisee, this means that all sales, regardless of payment method (cash or credit), contribute to the Gross Sales figure used to calculate royalties and assess the overall performance of the franchise. This comprehensive definition ensures that all revenue streams are accounted for, providing a clear picture of the unit's financial performance.

It is important to note that while Gross Sales includes a broad range of revenue sources, it specifically excludes certain items like discounts and sales taxes. Franchisees should be aware of these exclusions to accurately track and report their sales figures. Additionally, the FDD emphasizes that the Gross Sales figures presented are historical representations and that individual results may vary, with no guarantee of achieving similar sales levels.