What is the low-end estimated cost for space acquisition and leasehold improvements for a Fat Shack franchise?
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 |
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 low-end estimated cost for space acquisition and leasehold improvements is $50,000. This figure covers the expenses required to prepare the restaurant location to meet Fat Shack's standards and specifications. These costs can fluctuate based on whether the space is newly constructed or a remodel of an existing location.
The leasehold improvements typically include interior remodeling, floor covering, painting, wall covering, HVAC, Type I hood, electrical, plumbing, design, millwork, and other improvements. These costs can vary significantly from one market to another. The high estimates in the FDD reflect the build-out of a 2,500 square foot space.
Prospective Fat Shack franchisees should carefully consider these costs and obtain detailed estimates for their specific location to avoid unexpected expenses. Customization of the space can also lead to higher leasehold improvement costs. It is important to note that the franchisee is responsible for covering all these costs.