Who is responsible for the costs associated with participating in Fat Shack's promotional campaigns?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
- Except as prohibited or limited by law, Franchisee shall fully participate in all promotional campaigns, prize contests, special offers, gift card programs, discount programs including deal-of-the-day and crowdsourcing programs, and other programs, whether international, national, regional, or local in nature (including the introduction of new products or services or other marketing programs directed or approved by FSI), which are prescribed from time to time by FSI.
Franchisee shall be responsible for the costs of such participation.
In order to participate in FSI's gift card program, Franchisee will be required to utilize the gift card sales and reporting services of a supplier designated by FSI and pay all fees and costs related to those services, which are subject to change by FSI or the supplier periodically.
In addition, Franchisee shall honor any coupons, gift certificates, gift cards, discounts, or other authorized promotional offers of FSI at Franchisee's sole cost unless otherwise specified in writing by FSI.
Franchisee acknowledges that FSI frequently implements such promotions intended to increase customer awareness and build business on an international, national, regional, or local level, and Franchisee's participation in these promotions is essential to their success.
Franchisee acknowledges that FSI has no obligation to reimburse Franchisee for the costs associated with participating in these promotions.
In FSI's discretion, it may create and make available to the public a mobile device application for the FAT SHACK system, which may incorporate these type of promotional programs and offers, which Franchisee must participate in and honor at its sole cost.
FSI may impose additional conditions and requirements related to the application when operational.
From time to time a promotion may not benefit all franchisees in the FAT SHACK system; and if the promotion is not offered in the region, or another unknown hardship arises, FSI may, at FSI's option, exempt Franchisee and/or other franchisees on a case-by-case basis.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, franchisees are generally responsible for the costs associated with participating in promotional campaigns. The FDD specifies that franchisees must participate in all promotional campaigns, including prize contests, special offers, gift card programs, and discount programs, as prescribed by Fat Shack.
The franchisee bears the costs of participating in these campaigns. This includes honoring coupons, gift certificates, gift cards, and other authorized promotional offers at the franchisee's sole cost, unless Fat Shack specifies otherwise in writing. Fat Shack may also introduce a mobile device application for promotional programs, which franchisees must participate in and honor at their own expense.
Fat Shack acknowledges that these promotions are intended to increase customer awareness and build business, and the franchisee's participation is essential for their success. Fat Shack is not obligated to reimburse franchisees for the costs associated with these promotions, although it may exempt franchisees from certain promotions on a case-by-case basis if a promotion does not benefit all franchisees or if another hardship arises.