Why was one Fat Shack unit excluded from the company-owned unit Gross Sales data?

According to Fat Shack's 2025 Franchise Disclosure Document, one company-owned unit was excluded from the average annual Gross Sales chart because it was not operated as a company-owned unit for the entire calendar year 2024. Specifically, this unit was owned and operated by a Fat Shack affiliate for only part of the year before being transferred to a franchisee.

This exclusion is important for prospective franchisees to understand because the Item 19 financial performance representations are intended to provide insight into the potential sales of a typical Fat Shack restaurant. Including data from a unit that changed ownership mid-year could skew the results and not accurately reflect the performance of a fully operational company-owned unit. The FDD clarifies that the chart includes the five company-owned units that operated for the full year 2024, which aims to give a more consistent and reliable representation of sales performance.

By excluding this unit, Fat Shack aims to present a clearer picture of the financial performance that franchisees might expect from a company-owned restaurant operating under normal conditions for a full year. This aligns with the FTC's Franchise Rule, which permits franchisors to provide financial performance information if there is a reasonable basis for the information and it is included in the Franchise Disclosure Document.