What is the minimum annual gross sales a Fat Shack franchisee must generate?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Beginning on the earlier of (i) the opening of the FAT SHACK Restaurant, or (ii) 1½ years from the date of this Agreement, and for each 12-month period thereafter (each period being a "Sales Quota Year"), Franchisee must generate a minimum in Gross Sales (the "Minimum Sales Quota") in the FAT SHACK Restaurant as follows:
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to the 2025 Fat Shack Franchise Disclosure Document, a franchisee must meet a minimum annual gross sales quota. This requirement begins either when the Fat Shack restaurant opens or 18 months (1½ years) from the date of the Franchise Agreement, whichever comes first. After this point, the franchisee must meet the Minimum Sales Quota for each subsequent 12-month period, referred to as a 'Sales Quota Year.'
While the FDD specifies that a minimum sales quota exists, the actual required amount is not provided in this excerpt. The document only states that the franchisee 'must generate a minimum in Gross Sales (the "Minimum Sales Quota") in the FAT SHACK Restaurant as follows,' without specifying the actual sales figures.
A prospective Fat Shack franchisee should carefully review the complete Franchise Agreement and related exhibits to determine the specific Minimum Sales Quota applicable to their location. It is essential to understand this financial obligation and assess the feasibility of achieving the required sales volume before investing in a Fat Shack franchise. Franchisees should also inquire about any factors that could affect the Minimum Sales Quota, such as location, market conditions, and the franchisor's support and training programs.