How much is the initial franchise fee for each subsequent Fat Shack franchise agreement after the first?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
You must pay an initial franchise fee of $35,000 for the first Franchise Agreement that you sign, and $18,000 for each subsequent Franchise Agreement that you sign ("Initial Franchise Fee"). You must sign a separate Franchise Agreement for each FAT SHACK Restaurant you operate and pay the Initial Franchise Fee in a lump sum when you sign each Franchise Agreement.
Development Agreement Fees
Under the Development Agreement, you must pay us the Initial Franchise Fee noted above for your first FAT SHACK Restaurant franchise plus a $5,000 fee ("Development Fee") multiplied by the number of additional FAT SHACK Restaurants to be developed. We will credit the Development Fee attributable to the each subsequent FAT SHACK Restaurant to be developed under the Development Agreement to the Initial Franchise Fee due under the Franchise Agreement for such FAT SHACK Restaurant. The total Initial Franchise Fee payable for each of the second and subsequent FAT SHACK Restaurants is $18,000 per franchise.
Source: Item 5 — Initial Fees (FDD pages 13–15)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the initial franchise fee for each subsequent franchise agreement is $18,000. This fee is due in a lump sum when signing each Franchise Agreement. A separate Franchise Agreement must be signed for each Fat Shack restaurant operated.
If a franchisee enters into a Development Agreement, they must pay the initial franchise fee for the first Fat Shack restaurant, along with a $5,000 development fee multiplied by the number of additional restaurants to be developed. The development fee attributable to each subsequent Fat Shack restaurant will be credited towards the initial franchise fee due under the Franchise Agreement for that restaurant. The total initial franchise fee payable for each of the second and subsequent Fat Shack restaurants is $18,000 per franchise.
Prospective franchisees should note that Fat Shack does not offer financing for any portion of the initial fees. All fees must be paid in full when signing the applicable agreement and are non-refundable under any circumstances. This is a fairly standard practice in the franchise industry, as initial fees are used to cover the franchisor's costs of setting up the new franchise location and providing initial training and support.