Can Fat Shack waive the Lease Review Fee for additional sites?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
After you select a location for your FAT SHACK Restaurant, we must approve that location. If the site is approved, we will review your lease, or, if applicable, purchase agreement, for your Restaurant Location. This review is solely for our benefit, and any legal counsel or other professional advisors we engage to assist with the review will be acting only on our behalf. Our approval of a lease indicates only that the lease meets our minimum criteria for the operation of a FAT SHACK Restaurant and that our interests and those of our affiliates are protected. We will review up to two leases or purchase agreements without a charge to you. If we are required to review three or more leases or purchase agreements, you must pay us a $750 fee ("Lease Review Fee") plus our out-of-pocket costs of reviewing and (if we so choose) negotiating the lease. The Lease Review Fee must be paid to us at the time we receive the third and each subsequent lease for our review. We may waive all or a portion of the Lease Review Fee for additional sites if we feel that it is appropriate to do so. Notwithstanding your payment of the Lease Review Fee, neither we nor our legal counsel or other professional advisors involved in the lease review are representing you or your interests in relation to the review and approval. You may elect to hire your own attorney or other professional advisors to review your lease or purchase agreement, and we recommend that you do so. You will pay for their services in addition to the Lease Review Fee. You may not sign a lease that we have not approved.
Source: Item 5 — Initial Fees (FDD pages 13–15)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, Fat Shack may choose to waive the Lease Review Fee for additional locations. The standard procedure is that Fat Shack will review up to two leases or purchase agreements without charging a fee. However, for the third and each subsequent lease or purchase agreement requiring review, a franchisee must pay a $750 Lease Review Fee, in addition to Fat Shack's out-of-pocket costs for the review and any potential negotiations.
However, the FDD states that Fat Shack retains the discretion to waive all or a portion of this Lease Review Fee for additional sites if they deem it appropriate. This waiver is not guaranteed, and the decision rests solely with Fat Shack.
This clause provides a potential benefit to franchisees planning to open multiple Fat Shack locations, as it could reduce their initial investment costs. However, franchisees should not rely on this waiver being granted and should budget for the full Lease Review Fee for each location beyond the initial two. It is advisable to discuss the possibility of a fee waiver with Fat Shack during the franchise application process, especially if planning to develop multiple units.