factual

Under what conditions does a Fat Shack franchisee have to pay for on-site opening assistance?

Fat_Shack Franchise · 2025 FDD

Answer from 2025 FDD Document

on 7.1.

  • f. If the FAT SHACK Restaurant to be opened under this Agreement is Franchisee's first FAT SHACK Restaurant, opening assistance consisting of one or more representatives of FSI on site at the Restaurant Location for not less than 30 days to assist Franchisee in opening the FAT SHACK Restaurant; provided, however, that Franchisee shall hire in advance of the opening date and be exclusively responsible for the training, compensation and control of its employees. If FSI's representatives must travel more than 100 miles and incur room and board expenses, Franchisee shall pay FSI $195.00 per day for each day the on-site opening assistance

Source: Item 23 — Receipts (FDD pages 53–223)

What This Means (2025 FDD)

According to Fat Shack's 2025 Franchise Disclosure Document, on-site opening assistance is provided for a franchisee's first Fat Shack restaurant. This assistance involves one or more representatives from FSI (presumably Fat Shack International) being present at the restaurant location for a minimum of 30 days to help the franchisee with the opening. The franchisee is responsible for hiring, training, compensating, and controlling their employees.

However, the franchisee will incur costs for this on-site assistance under specific conditions. If FSI's representatives need to travel more than 100 miles to reach the restaurant and, as a result, incur expenses for room and board, the franchisee is required to pay FSI $195.00 per day for each day that the on-site opening assistance is provided. This means that franchisees opening their first Fat Shack location far from FSI's base of operations will need to budget for these additional daily expenses to cover the travel and accommodation costs of the FSI representatives.

It is important to note that this on-site assistance is specifically for the opening of the franchisee's first Fat Shack restaurant. For subsequent locations, the terms of assistance and associated costs may differ, as outlined in any Subsequent Franchise Agreements. Additionally, the franchisee is responsible for the costs associated with training their employees, regardless of whether the on-site assistance is provided by FSI.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.