Under what conditions might Fat Shack license proprietary software to franchisees?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right, in the Franchise Agreement, to license to you our own proprietary software if we develop proprietary software in the future.
Source: Item 7 — Estimated Initial Investment (FDD pages 18–22)
What This Means (2025 FDD)
According to the 2025 Fat Shack Franchise Disclosure Document, Fat Shack reserves the right to license its own proprietary software to franchisees in the future if they develop such software. Currently, franchisees are required to purchase a computerized point-of-sale (POS) system from a third-party supplier, loaded with software customized for Fat Shack restaurants.
The estimated initial investment for computer, software, and office equipment ranges from $750 to $2,000. The POS system itself costs between $6,000 and $12,000, with ongoing support and maintenance fees ranging from $350 to $500 per month. These costs are paid to a third-party supplier, not Fat Shack.
Should Fat Shack develop its own proprietary software, they may require franchisees to license it, potentially replacing the existing third-party POS system. This could involve additional costs for franchisees, including licensing fees and potential hardware upgrades to ensure compatibility. Prospective franchisees should inquire about Fat Shack's plans for developing proprietary software and the potential implications for their technology investments.