If FSI does not establish pricing limits for a Fat Shack restaurant, can they suggest prices?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
If FSI does not establish pricing limits, it may establish suggested prices.
In that case, any prices that FSI recommends to Franchisee are merely recommendations and Franchisee may establish its own prices, which may be higher or lower than FSI's recommended prices.
Franchisee must abide by FSI's advertising policies related to advertising prices.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, if FSI (presumably Fat Shack International) does not set specific pricing limits, they are allowed to suggest prices to franchisees. However, these prices are merely recommendations.
This means that as a Fat Shack franchisee, you have the flexibility to set your own prices, which can be higher or lower than the suggested prices provided by Fat Shack. This allows you to adjust your pricing strategy based on local market conditions, competition, and other factors that may influence your business.
It's important to note that while you have pricing flexibility, you must still adhere to Fat Shack's advertising policies related to advertised prices. This suggests that Fat Shack maintains some control over how prices are advertised to ensure brand consistency and prevent misleading advertising. Therefore, while you can set your own prices, you need to be mindful of Fat Shack's advertising guidelines.