Who is responsible for the costs of leasehold improvements for a Fat Shack Restaurant?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Your Restaurant Location must meet our standards and specifications.
The high estimates in the above chart reflect the build-out of a 2,500 square foot space.
Your costs to improve the Restaurant Location will also depend in large part on whether your space is completely constructed or is the remodel of an existing space.
The leasehold improvements that you will typically make include interior remodeling, floor covering, painting, wall covering, HVAC, Type I hood, electrical, plumbing, design, millwork, and various other improvements.
These costs may vary significantly from market to market.
You will be responsible for these costs.
Leasehold Improvements may be higher if you elect to have special customization build out of your space.
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 franchisee is responsible for the costs of leasehold improvements. These costs can range from $50,000 to $200,000. Leasehold improvements typically include interior remodeling, floor covering, painting, wall covering, HVAC, Type I hood, electrical, plumbing, design, millwork, and various other improvements to ensure the Restaurant Location meets Fat Shack's standards and specifications.
The FDD notes that the costs associated with leasehold improvements will depend on the condition of the space being leased, whether it is a completely constructed space or a remodel of an existing space. The high estimates provided in the chart reflect the build-out of a 2,500 square foot space. Franchisees should also be aware that leasehold improvement costs may be higher if they elect to have special customization build out of their space.
Prospective Fat Shack franchisees should carefully consider these costs and obtain detailed estimates for their specific location to accurately assess their initial investment. It is advisable to discuss these figures with a business advisor to make an informed decision about purchasing a franchise.
The initial investment table outlines that these costs are paid to 'Other Suppliers' before opening, as arranged between the franchisee and the suppliers.