What is the Relocation Fee that a Fat Shack franchisee must pay if they relocate their restaurant location?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
The rights granted to Franchisee are for the specific Restaurant Location and cannot be transferred to any other location, except with FSI's prior written approval. The Marks and Licensed Methods are licensed only for the Restaurant Location. If Franchisee elects to move or relocate the Restaurant Location at any time during the term of this Agreement, Franchisee shall submit information about the proposed Restaurant Location to FSI for approval in accordance with the terms of Section 6.1 and other provisions of this Agreement and shall simultaneously pay FSI a "Relocation Fee" that is equal to 25 percent of the then-current Initial Franchise Fee for a first FAT SHACK Restaurant.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, a franchisee who chooses to relocate their restaurant during the term of the agreement must first seek approval from Fat Shack. Along with submitting information about the proposed new location for approval, the franchisee must also pay a Relocation Fee.
The Relocation Fee is equal to 25% of the then-current Initial Franchise Fee for a first Fat Shack restaurant. This fee is payable at the same time as submitting the new location information to Fat Shack for approval.
It is important to note that the rights granted to a franchisee are specific to the approved restaurant location and cannot be transferred to another location without Fat Shack's prior written approval. The franchisee is only licensed to use Fat Shack's Marks and Licensed Methods at the approved Restaurant Location. This policy ensures that Fat Shack maintains control over its brand and standards, even if a franchisee wishes to move their business within their protected territory.