When is the Successor Franchise (Renewal) Fee due for a Fat Shack franchise?

Question

Accepted Answer

| Type of Fee               | Amount                                                                                                         | Due Date                                                                                                  | Remarks                                                                                                                                                                                                   |
|---------------------------------------|----------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Relocation Fee1 | 25% of the then-current Initial Franchise Fee | Before you move your FAT SHACK Restaurant | Payable if you move your FAT SHACK Restaurant from one location to another. |
| Additional Training1,4 | Tuition, if applicable, and costs associated with attending additional training programs | As incurred | We may require additional training periodically. Tuition, if any, is payable to us. All other costs are payable to third party suppliers. |
| Interest and Late Payment Charges1 | Lesser of 1½% per month or highest rate of interest allowed by law, plus a \$50 late filing charge | Upon demand | Begins to accrue the day after payments are due for the Royalty Fees and Marketing and Promotion Fees. |
| Successor Franchise (Renewal) Fee1 | \$6,000 | When you renew your franchise and sign the then current Franchise Agreement and Successor Franchise Rider | Payable when you renew the term of your Franchise Agreement. |
| Costs of Inspection and Audit1 | Cost of audit, underpayment amount, late payment charges and interest. Varies according to your location | 15 days after receipt of our notice to you of any underpayment | These costs are payable only if you understate your Gross Sales by more than 2%, do not submit reports to us or do not cooperate in performance of inspection and audit. |
|  | If you commit an Act of Deception (as defined in Section 16.5 of the Franchise Agreement), minimum of \$10,000 | Payable in advance | If you commit an Act of Deception, you must pay us \$10,000 immediately upon notice from us to cover the cost of the audit. Any amounts unpaid, unreported or underreported must also be paid in full. |
| Costs and Attorneys Fees1 | Will vary under circumstances | As incurred | Payable only if you do not comply with the Franchise Agreement or Development Agreement. |
| Additional Meeting Fee1,4 | Will vary, but will not be more than \$1,000 per Additional Meeting | As incurred | If we request, you must attend up to two Additional Meetings each year. Tuition, if any, is payable to us. All other costs are payable to third party suppliers. |
| Testing Fee1 | Cost of testing | As incurred | This covers the costs of testing new products or inspecting new suppliers you propose. |

Source: Item 6 — Other Fees (FDD pages 15–18)

When is the Successor Franchise (Renewal) Fee due for a Fat Shack franchise?

Answer from 2025 FDD Document

What This Means (2025 FDD)

Type of Fee	Amount	Due Date	Remarks
Relocation Fee1	25% of the then-current Initial Franchise Fee	Before you move your FAT SHACK Restaurant	Payable if you move your FAT SHACK Restaurant from one location to another.
Additional Training1,4	Tuition, if applicable, and costs associated with attending additional training programs	As incurred	We may require additional training periodically. Tuition, if any, is payable to us. All other costs are payable to third party suppliers.
Interest and Late Payment Charges1	Lesser of 1½% per month or highest rate of interest allowed by law, plus a $50 late filing charge	Upon demand	Begins to accrue the day after payments are due for the Royalty Fees and Marketing and Promotion Fees.
Successor Franchise (Renewal) Fee1	$6,000	When you renew your franchise and sign the then current Franchise Agreement and Successor Franchise Rider	Payable when you renew the term of your Franchise Agreement.
Costs of Inspection and Audit1	Cost of audit, underpayment amount, late payment charges and interest. Varies according to your location	15 days after receipt of our notice to you of any underpayment	These costs are payable only if you understate your Gross Sales by more than 2%, do not submit reports to us or do not cooperate in performance of inspection and audit.
	If you commit an Act of Deception (as defined in Section 16.5 of the Franchise Agreement), minimum of $10,000	Payable in advance	If you commit an Act of Deception, you must pay us $10,000 immediately upon notice from us to cover the cost of the audit. Any amounts unpaid, unreported or underreported must also be paid in full.
Costs and Attorneys Fees1	Will vary under circumstances	As incurred	Payable only if you do not comply with the Franchise Agreement or Development Agreement.
Additional Meeting Fee1,4	Will vary, but will not be more than $1,000 per Additional Meeting	As incurred	If we request, you must attend up to two Additional Meetings each year. Tuition, if any, is payable to us. All other costs are payable to third party suppliers.
Testing Fee1	Cost of testing	As incurred	This covers the costs of testing new products or inspecting new suppliers you propose.