When is the lease review fee due to Fat Shack?
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 Open |
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, which can reach up to $750, is due "on delivery of third and each subsequent lease or purchase agreement for our review" and is paid to Fat Shack. This fee covers Fat Shack's review of potential lease agreements or purchase agreements for the location of your franchise.
This means that a prospective Fat Shack franchisee will not incur this fee until they have submitted at least three potential lease agreements or purchase agreements to Fat Shack for their consideration. The fee is then payable each time the franchisee submits another lease or purchase agreement for review beyond the initial two submissions.
It is important to note that the fee is "as arranged", suggesting there may be some flexibility in the payment method or schedule. However, the FDD is clear that the fee is triggered upon the delivery of the third and subsequent agreements. Franchisees should budget for this potential cost when evaluating locations and negotiating lease terms.