What is the time period for each Sales Quota Year for a Fat Shack franchise?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Beginning on the earlier of (i) the opening of the FAT SHACK Restaurant, or (ii) 1½ years from the date of this Agreement, and for each 12-month period thereafter (each period being a "Sales Quota Year"), Franchisee must generate a minimum in Gross Sales (the "Minimum Sales Quota") in the FAT SHACK Restaurant as follows:
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, each Sales Quota Year is defined as a 12-month period. This period begins on the earlier of either the opening date of the Fat Shack restaurant or 1½ years (18 months) from the date of the Franchise Agreement.
This means that a Fat Shack franchisee's performance will be evaluated annually against a minimum sales target, starting no later than 18 months after signing the agreement, even if the restaurant hasn't opened by then. This evaluation determines whether the franchisee is meeting the franchisor's expectations for revenue generation.
For a prospective franchisee, this highlights the importance of opening the Fat Shack restaurant as soon as possible after signing the Franchise Agreement. If the restaurant opening is delayed, the franchisee will still be held to a sales quota beginning 18 months after the agreement date, regardless of whether the restaurant is operational.