Is there currently a Marketing and Promotion Fee charged by Fat Shack?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
| Column 1 | Column 2 | Column 3 | Column 4 |
|---|---|---|---|
| Type of Fee | Amount | Due Date | Remarks |
| Royalty1 | 6% of your Gross Sales2 | Payable weekly on Tuesday of each week based on the prior week's Gross Sales | The Royalty is for the ongoing grant of the rights to use the Marks and Licensed Methods, and on-going support. We will debit your bank account for the Royalty.3 You must meet minimum Sales Quota. See Item 12. |
| Marketing and Promotion Fee1 | None, but we reserve the right to charge up to 1½% of your Gross Sales2 | Payable with the Royalty Fee | We may collect a Marketing and Promotion Fee starting upon 30 days' notice to you. Once commenced, we will debit your bank account for amounts due.3 We may reallocate all or a portion of this fee to a Regional Advertising Program if one is established in your region. You must meet minimum Sales Quota. See Item 12. |
Source: Item 6 — Other Fees (FDD pages 15–18)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, there is currently no Marketing and Promotion Fee. However, Fat Shack retains the right to implement one in the future, up to a maximum of 1½% of Gross Sales.
Should Fat Shack decide to implement this fee, they are required to provide franchisees with a 30-day notice before commencing collections. Once implemented, the Marketing and Promotion Fee will be payable alongside the Royalty Fee, and Fat Shack will debit the franchisee's bank account for the amounts due.
Fat Shack also has the option to reallocate all or part of this fee to a Regional Advertising Program if one is established in the franchisee's region. Franchisees are also required to meet minimum Sales Quotas, as detailed in Item 12 of the FDD.