Does Fat Shack pass on the cost of advertising and promotional materials to franchisees?

According to Fat Shack's 2025 Franchise Disclosure Document, Fat Shack may pass on the cost of advertising and promotional materials to its franchisees. Specifically, Fat Shack may give franchisees access to advertising and promotional materials developed by them, and the cost of these materials may be passed on to the franchisee.

Currently, Fat Shack does not require franchisees to conduct specific advertising for their Fat Shack restaurants, but they recommend it. While there isn't a current requirement to spend a specific amount or percentage of gross sales on advertising, Fat Shack retains the right to implement such a requirement in the future. If this occurs, franchisees will need to submit regular reports accounting for the use of these funds. Additionally, if a regional advertising program is established in the franchisee's area, a portion of the local advertising amounts may be allocated to that regional program.

If a franchisee proposes to use advertising materials not previously developed or approved by Fat Shack, they must submit the proposed advertising for review, approval, or modification, and they will bear the cost of this process. The franchisee is responsible for the costs of printing all materials, and any proposed printing service supplier must be approved by Fat Shack. All advertising and promotion of the Fat Shack Restaurant must be in a media type and format approved in writing by Fat Shack and conducted in a dignified manner, conforming to the standards and requirements specified by Fat Shack or its designated vendor. Any written advertising or marketing program descriptions not previously approved must be submitted to Fat Shack at least 10 days before publication, broadcast, or use.

Fat Shack is not required to spend any amount on advertising in the area or territory where a franchisee's Fat Shack Restaurant is located. Furthermore, Fat Shack does not require franchisees to participate in a local or regional advertising cooperative, although they reserve the right to do so in the future. As of the date of the 2025 Disclosure Document, Fat Shack has not collected a Marketing and Promotion Fee, nor have they established a National Marketing and Promotion Fund or program. However, they may require franchisees to remit a Marketing and Promotion Fee of up to 1½ percent of Gross Sales with 30 days' notice. 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.