How much is the Successor Franchise Fee for a Fat Shack franchise, and when is it due?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
oyees and agents;
- e. Pays a successor franchise fee ("Successor Franchise Fee") in the amount of $6,000.00 upon each exercise of the successor franchise rights and any other fees set forth in the successor franchise rider to cover FSI's expenses related to reviewing Franchisee's operations and approving the option. The Successor Franchise Fee will be due and payable upon execution of FSI's then current Franchise Agreement and will be nonrefundable under all circumstances once paid. The Successor Franchise Fee is paid in lieu of an additional initial
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, a franchisee who qualifies and chooses to renew their franchise agreement will need to pay a Successor Franchise Fee. This fee is $6,000.00 and is due upon the execution of Fat Shack's then-current Franchise Agreement.
It is important to note that this fee covers Fat Shack's expenses related to reviewing the franchisee's operations and approving the option to renew. The Successor Franchise Fee is paid instead of an additional initial franchise fee, which is typically charged to new franchisees.
This fee is nonrefundable under all circumstances once paid, so a franchisee should carefully consider their decision to renew before paying the fee. The new franchise agreement may also contain terms that are substantially different from the original agreement, including changes to royalty and other fee amounts.