What is the range for estimated lease costs for a Fat Shack franchise?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
| Column 1 | Column 2 | Column 3 | Column 4 | Column 5 | |
|---|---|---|---|---|---|
| Type of expenditure | Amount (Low) | Amount (High) | Method Of Payment | When Due | To Whom Payment Is To Be Made |
| Initial Franchise Fee | $35,000 | $35,000 | Lump Sum | At signing of Franchise | Us |
| (See Note 1) | Agreement | ||||
| Lease Costs | $4,000 | $15,000 | As arranged | Before Opening | Landlord |
| (See Note 2) |
Source: Item 7 — Estimated Initial Investment (FDD pages 18–22)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the estimated lease costs for a location range from $4,000 to $15,000. These costs are to be arranged with the landlord and are due before the Fat Shack restaurant opens. Note 2 in Item 7 of the FDD indicates that a Fat Shack restaurant typically requires between 1,200 to 2,500 square feet of space and is often located near a college campus in a mall, strip center, or office/retail building.
The FDD also notes that smaller leased spaces typically have higher rent rates on a price per square foot basis. The estimated lease rent rates are based on rates incurred by current and past Fat Shack affiliates; however, the actual lease rate can vary considerably depending on the location. The document does not consider potential landlord concessions, such as free rent, in its estimates.
Prospective franchisees should carefully consider the location and size of the space when estimating lease costs, as these factors can significantly impact the overall investment. Reviewing past and current affiliate lease rates may provide a more accurate estimate for a specific location. It is also important to investigate potential landlord concessions to help offset initial costs. Franchisees should consult with a business advisor to carefully review these figures before making any decisions.