What is the minimum sales quota for a Fat Shack franchise from its fifth year of operation onward?

The 2025 Fat Shack Franchise Disclosure Document outlines the minimum annual gross sales a franchisee must generate. According to the FDD, beginning either at the opening of the Fat Shack restaurant or 1.5 years from the agreement date, the franchisee must meet a minimum sales quota each 12-month period. The minimum sales quota for the first Sales Quota Year is $350,000. For the second Sales Quota Year, the minimum is $400,000. The third Sales Quota Year requires $450,000 in gross sales. The fourth Sales Quota Year requires $500,000 in gross sales.

For the fifth Sales Quota Year and each year thereafter, the minimum sales quota is $550,000. This requirement continues for each subsequent 12-month period of operation. Meeting these minimum sales quotas is crucial for remaining in good standing with Fat Shack and maintaining the franchise agreement.

Failure to meet the minimum sales quota could lead to consequences outlined in the franchise agreement, potentially impacting the franchisee's ability to continue operating the Fat Shack restaurant. Prospective franchisees should carefully consider these sales targets and assess their ability to achieve them based on their market, location, and business acumen.