When are the Initial Training Program Expenses for a Fat Shack franchise due?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Relocation Fee1 | 25% of the then-current Initial Franchise Fee | Before you move your FAT SHACK Restaurant | Payable if you move your FAT SHACK Restaurant from one location to another. |
| Additional Training1,4 | Tuition, if applicable, and costs associated with attending additional training programs | As incurred | We may require additional training periodically. Tuition, if any, is payable to us. All other costs are payable to third party suppliers. |
| Interest and Late Payment Charges1 | Lesser of 1½% per month or highest rate of interest allowed by law, plus a $50 late filing charge | Upon demand | Begins to accrue the day after payments are due for the Royalty Fees and Marketing and Promotion Fees. |
| Successor Franchise (Renewal) Fee1 | $6,000 | When you renew your franchise and sign the then current Franchise Agreement and Successor Franchise Rider | Payable when you renew the term of your Franchise Agreement. |
| Costs of Inspection and Audit1 | Cost of audit, underpayment amount, late payment charges and interest. Varies according to your location | 15 days after receipt of our notice to you of any underpayment | These costs are payable only if you understate your Gross Sales by more than 2%, do not submit reports to us or do not cooperate in performance of inspection and audit. |
| If you commit an Act of Deception (as defined in Section 16.5 of the Franchise Agreement), minimum of $10,000 | Payable in advance | If you commit an Act of Deception, you must pay us $10,000 immediately upon notice from us to cover the cost of the audit. Any amounts unpaid, unreported or underreported must also be paid in full. | |
| Costs and Attorneys Fees1 | Will vary under circumstances | As incurred | Payable only if you do not comply with the Franchise Agreement or Development Agreement. |
| Additional Meeting Fee1,4 | Will vary, but will not be more than $1,000 per Additional Meeting | As incurred | If we request, you must attend up to two Additional Meetings each year. Tuition, if any, is payable to us. All other costs are payable to third party suppliers. |
| Testing Fee1 | Cost of testing | As incurred | This covers the costs of testing new products or inspecting new suppliers you propose. |
Source: Item 6 — Other Fees (FDD pages 15–18)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the expenses associated with the initial training program are due as incurred. These expenses are payable to third-party suppliers, covering costs like travel, meals, and lodging while attending the training sessions. Fat Shack franchisees should budget for these costs to ensure they can attend the required initial training.
Unlike some franchise systems where training fees are paid directly to the franchisor, Fat Shack's structure requires franchisees to manage and pay these expenses directly to the vendors providing the services. This means the franchisee has some control over costs, potentially choosing more economical options for travel and accommodation. However, it also places the responsibility on the franchisee to organize and handle these logistics.
It is important to note that while Fat Shack does not currently charge a tuition fee for training additional managers, they reserve the right to do so in the future. If such a tuition fee is implemented, it would likely be payable to Fat Shack directly, separate from the expenses paid to third-party suppliers. Franchisees should clarify with Fat Shack whether any changes to the training fee structure are anticipated to avoid unexpected costs.