What was the net change in the number of company-owned Fat Shack outlets during 2024?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
| Outlet type | Year | Outlets at the Start of the year | Outlets at the End of the year | Net Change |
|---|---|---|---|---|
| Franchised | 2022 | 24 | 24 | 0 |
| 2023 | 24 | 24 | 0 | |
| 2024 | 24 | 24 | 0 | |
| Company-Owned1 | 2022 | 3 | 5 | +2 |
| 2023 | 5 | 6 | +1 | |
| 2024 | 6 | 5 | -1 | |
| Total Outlets | 2022 | 27 | 29 | +2 |
| 2023 | 29 | 30 | +1 | |
| 2024 | 30 | 29 | -1 |
Source: Item 20 — Outlets and Franchisee Information (FDD pages 49–52)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the net change in the number of company-owned outlets during 2024 was -1. This means that Fat Shack had one fewer company-owned restaurant at the end of 2024 than it did at the beginning of the year. At the start of 2024, Fat Shack had 6 company-owned outlets, and by the end of the year, it had 5.
It is important for a prospective franchisee to understand the performance and changes in both franchised and company-owned outlets. Company-owned store data can provide insights into the franchisor's direct operational decisions and their impact on outlet numbers. A decrease in company-owned stores could signal various factors, such as strategic shifts, financial constraints, or operational challenges.
Reviewing the trends over several years, from 2022 to 2024, shows that Fat Shack's number of company-owned locations increased from 3 to 6 between 2022 and 2023, then decreased to 5 in 2024. This fluctuation may warrant further investigation by a potential franchisee to understand the reasons behind these changes and their implications for the overall health and strategy of the franchise system.
Prospective franchisees should inquire with Fat Shack about the reasons for the decrease in company-owned stores during 2024. Understanding the factors that led to this change can help in assessing the stability and growth potential of the franchise. Additionally, it would be beneficial to compare the performance metrics of company-owned stores versus franchised locations to gauge the relative success and support provided to each type of outlet.