What are the payment options available to Fat Shack, Inc. (FSI) for the purchase price of the Fat Shack Restaurant?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
FSI will pay the purchase price in full at the closing, or, at its option, in 24 equal consecutive monthly installments with interest at a rate equal to the prime lending rate as of the closing at FSI's primary bank.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, Fat Shack, Inc. (FSI) has two options for paying the purchase price of a Fat Shack Restaurant. FSI can either pay the full purchase price in cash at the closing or finance the purchase.
If FSI chooses to finance the purchase, it will pay the purchase price in 24 equal consecutive monthly installments. The installment payments will include interest. The interest rate will be equal to the prime lending rate as of the closing date at FSI's primary bank.
It is important to note that the purchase price itself is determined as the fair market value of the assets, excluding any goodwill associated with the Fat Shack marks. This fair market value is mutually determined by FSI and the franchisee, or through a third-party appraisal process if they cannot agree.