When is the Successor Franchise Fee due for a Fat Shack franchise?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
oyees and agents;
- e. Pays a successor franchise fee ("Successor Franchise Fee") in the amount of $6,000.00 upon each exercise of the successor franchise rights and any other fees set forth in the successor franchise rider to cover FSI's expenses related to reviewing Franchisee's operations and approving the option. The Successor Franchise Fee will be due and payable upon execution of FSI's then current Franchise Agreement and will be nonrefundable under all circumstances once paid. The Successor Franchise Fee is paid in lieu of an additional initial
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the Successor Franchise Fee is due upon the execution of Fat Shack's then-current Franchise Agreement. This fee is in the amount of $6,000.00 and is required each time a franchisee exercises their successor franchise rights.
This fee covers Fat Shack's expenses related to reviewing the franchisee's operations and approving the option to renew the franchise agreement. It is important to note that this fee is nonrefundable under all circumstances once it has been paid to Fat Shack.
The Successor Franchise Fee is paid instead of an additional initial franchise fee, which is a benefit to the franchisee. However, the franchisee must also agree to upgrade and remodel the Fat Shack restaurant at their own expense to conform with the current Operations Manual requirements, if Fat Shack deems it necessary. The franchisee or their General Manager must also successfully complete a refresher operations training program, unless waived by Fat Shack, and cover all associated travel and living expenses.