How is the Minimum Sales Quota calculated for a Fat Shack franchise?
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 FDD, a franchisee must meet a minimum 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.'
The FDD excerpt does not specify the exact dollar amount or formula used to determine the Minimum Sales Quota. The excerpt only establishes the timeframe for when the quota applies.
Prospective Fat Shack franchisees should inquire about the specific Minimum Sales Quota applicable to their location and the factors that influence its calculation. Understanding how the Minimum Sales Quota is determined is crucial for assessing the financial viability of the franchise and setting realistic sales targets.