What is the minimum sales quota for a Fat Shack franchise during its first and second years of operation?
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 Fat Shack's 2025 Franchise Disclosure Document, a franchisee must meet a minimum annual gross sales quota starting either when the Fat Shack restaurant opens or 1.5 years from the date of the Franchise Agreement, whichever comes first. This minimum sales quota applies for each 12-month period thereafter, which is defined as a 'Sales Quota Year'.
This means that for the first year and a half of operation, a Fat Shack franchisee is not held to a specific minimum sales quota. However, after that initial period, the franchisee must meet the minimum sales quota or risk potential consequences specified in the Franchise Agreement. The specific amount of the minimum sales quota is not specified in this excerpt.
Prospective Fat Shack franchisees should carefully review the Franchise Agreement and related documents to understand the exact amount of the Minimum Sales Quota, how it is calculated, and what happens if the restaurant fails to meet the quota. Understanding these requirements is crucial for assessing the financial viability of the franchise and planning for successful operation.