How often is the Fat Shack Marketing and Promotion Fee due?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Marketing and Promotion Fund Contribution. We currently do not collect a Marketing and Promotion Fee, nor have we established a National Marketing and Promotion Fund or program. However, upon not less than 30 days' notice, we may require you to remit to us a Marketing and Promotion Fee of up to 1½ percent of Gross Sales. We may change the percentage of the Marketing and Promotion Fee upon 30 days' notice, but not above 1½ percent of Gross Sales. The Marketing and Promotion Fee is due to us along with your Royalty Fee payment, payable weekly by automatic transfer on Tuesday of each week, based on the amount of Gross Sales in the previous week. The Marketing and Promotion Fee will be placed in a separate account ("Marketing and Promotion Fund") will be accounted for separately. All company-owned and affiliate-owned FAT SHACK Restaurants will pay into the Marketing and Promotion Fund on an equal percentage basis with all franchised FAT SHACK Restaurants.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 28–36)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the Marketing and Promotion Fee is not currently collected. However, Fat Shack may implement this fee in the future with at least 30 days' notice. If implemented, the Marketing and Promotion Fee is due along with the Royalty Fee payment.
Specifically, the Marketing and Promotion Fee, if implemented, is payable weekly by automatic transfer on Tuesday of each week. This payment is based on the Gross Sales from the previous week. The fee will not exceed 1½ percent of Gross Sales.
This means that if Fat Shack decides to implement the Marketing and Promotion Fee, franchisees will need to ensure they have a system in place for tracking weekly gross sales and making the required automatic transfer each Tuesday. Franchisees should also be aware that Fat Shack can change the percentage of the Marketing and Promotion Fee with 30 days' notice, although it cannot exceed the 1½ percent cap.