Can Fat Shack reallocate the Marketing and Promotion Fee?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Marketing and Promotion Fee1 | None, but we reserve the right to charge up to 1½% of your Gross Sales2 | Payable with the Royalty Fee | We may collect a Marketing and Promotion Fee starting upon 30 days' notice to you. Once commenced, we will debit your bank account for amounts due.3 We may reallocate all or a portion of this fee to a Regional Advertising Program if one is established in your region. You must meet minimum Sales Quota. See Item 12. |
Source: Item 6 — Other Fees (FDD pages 15–18)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, Fat Shack has the ability to reallocate the Marketing and Promotion Fee. While the current Marketing and Promotion Fee is listed as none, Fat Shack reserves the right to charge up to 1½% of a franchisee's Gross Sales.
If Fat Shack decides to implement this fee, it will be payable along with the Royalty Fee. Fat Shack will provide franchisees with 30 days' notice before commencing the fee and will debit the franchisee's bank account for the amounts due.
Importantly, Fat Shack retains the right to reallocate all or a portion of this Marketing and Promotion Fee to a Regional Advertising Program if one is established in the franchisee's region. This means that while franchisees may be contributing to the Marketing and Promotion Fee, the funds could be directed towards regional advertising efforts rather than national campaigns, which may impact individual franchise locations differently.