What is the latest a Fat Shack franchisee might pay the lease review fee?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
| Column 1 | Column 2 | Column 3 | Column 4 | Column 5 | |
|---|---|---|---|---|---|
| Type of expenditure | Amount (Low) | Amount (High) | Method Of Payment | When Due | To Whom Payment Is To Be Made |
| Initial Franchise Fee | $35,000 | $35,000 | Lump Sum | At signing of Franchise | Us |
| (See Note 1) | Agreement | ||||
| Lease Costs | $4,000 | $15,000 | As arranged | Before Opening | Landlord |
| ( |
Source: Item 7 — Estimated Initial Investment (FDD pages 18–22)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the lease review fee is paid to Fat Shack. The payment is arranged and is due on delivery of the third and each subsequent lease or purchase agreement for review. The fee can be up to $750.
This means that a Fat Shack franchisee will not pay this fee until they have submitted at least three potential lease agreements or purchase agreements to Fat Shack for their consideration. The fee is only incurred if the franchisee seeks Fat Shack's review of multiple locations, suggesting the franchisee is having difficulty securing an acceptable site or is considering multiple options.
Since the fee is only due upon submission of the third and subsequent agreements, a franchisee who quickly finds a suitable location and only submits one or two agreements will not incur this fee at all. This fee is in addition to other costs associated with securing a location, such as lease costs, security deposits, and professional fees for legal and architectural services.