What do the Initial Training Program Expenses for a Fat Shack franchise cover?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty1 | 6% of your Gross Sales2 | Payable weekly on Tuesday of each week based on the prior week's Gross Sales | The Royalty is for the ongoing grant of the rights to use the Marks and Licensed Methods, and on-going support. We will debit your bank account for the Royalty.3 You must meet minimum Sales Quota. See Item 12. |
| Marketing and Promotion Fee1 | None, but we reserve the right to charge up to 1½% of your Gross Sales2 | Payable with the Royalty Fee | We may collect a Marketing and Promotion Fee starting upon 30 days' notice to you. Once commenced, we will debit your bank account for amounts due.3 We may reallocate all or a portion of this fee to a Regional Advertising Program if one is established in your region. You must meet minimum Sales Quota. See Item 12. |
| Initial Training Program Expenses4,5 | Costs associated with attending our initial training program | As incurred | Payable to third party suppliers. |
This includes expenses associated with travel, meals, and lodging while you attend initial training sessions. All of these expenses are paid to third parties. We reserve the right to charge a tuition fee for training additional managers, although as of the date of this Disclosure Document, we have not charged a fee for this additional training.
Source: Item 6 — Other Fees (FDD pages 15–18)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the initial training program expenses cover the costs associated with attending the initial training program. These expenses are payable to third-party suppliers. This includes expenses associated with travel, meals, and lodging while attending the initial training sessions. These expenses are also paid to third parties.
For a prospective Fat Shack franchisee, this means they will need to budget for travel, meals, and accommodation costs in addition to the initial franchise fee and other startup costs. These costs are paid directly to third-party suppliers, not to Fat Shack itself. It is important to note that Fat Shack reserves the right to charge a tuition fee for training additional managers, although as of the date of the FDD, they have not charged a fee for this additional training.
Franchisees should inquire about the estimated cost of these expenses and the duration of the initial training program to adequately prepare their budget. Understanding the full scope of these costs is crucial for making an informed decision about investing in a Fat Shack franchise. It is also important to note that these fees are non-refundable.