Are the Fat Shack sales figures a guarantee of future performance?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Some outlets have sold these amounts. Your individual results may differ. There is no assurance you will sell as much.
Written substantiation for this financial performance representation will be made available to you at our company headquarters in Fort Collins, Colorado upon your reasonable request.
Other than the preceding financial performance representation, we do not make any financial performance representations. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to our management by contacting Thomas J. Armenti, President, 420 East 58th Avenue, Suite 128B, Denver, Colorado 80216, telephone: (201) 417-4132, the Federal Trade Commission, and the appropriate state regulatory agencies.
Source: Item 19 — Financial Performance Representations (FDD pages 46–49)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the provided sales figures are not a guarantee of future performance. The FDD emphasizes that while some Fat Shack outlets have achieved certain sales figures, a new franchisee's individual results may differ, and there is no assurance that they will sell as much. The financial performance representation is based on the past performance of company-owned, affiliate-owned, and franchisee-owned units that operated for the entire calendar year 2024.
The FDD explicitly states that Fat Shack does not make any financial performance representations beyond what is included in Item 19. Furthermore, Fat Shack does not authorize its employees or representatives to make any such representations, either orally or in writing. If a prospective franchisee receives any financial performance information or projections of future income outside of the FDD, they are instructed to report it to Fat Shack's management, the Federal Trade Commission, and the appropriate state regulatory agencies.
It is common practice in franchising to provide financial performance representations, but these are always accompanied by disclaimers. The Fat Shack FDD adheres to this standard by presenting historical sales data while cautioning potential franchisees that their individual results may vary. Prospective franchisees should carefully review Item 19 and consider the factors that could influence their Fat Shack location's performance, such as location, market conditions, and management skills. They should also conduct their own independent research and consult with financial advisors before making any investment decisions.