Fat Shack Franchise FDD, Profits & Costs (2025)
Fat Shack was launched in 2010 by Tom Armenti in Fort Collins, Colorado, and has since carved out a strong presence in the fast-casual dining industry. Now based in Denver, Colorado, the brand started offering franchise opportunities in 2015 and has successfully grown its footprint across multiple states.
The restaurant is especially known for its indulgent “Fat Sandwiches,” generously packed with a mix of flavorful ingredients that offer a filling meal option. In addition to these sandwiches, the menu includes a wide variety of items such as burgers, chicken wings, appetizers, sweet treats, and both hot and cold drinks, appealing to a broad spectrum of customers.
Fat Shack’s distinctive appeal lies in its dedication to delivering bold, satisfying food well into the late-night hours. This focus on crave-worthy, comfort-style meals has helped the brand stand out in a competitive market, attracting loyal fans who appreciate its hearty offerings and unique concept.
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Initial Investment
How much does it cost to start a Fat Shack franchise? It costs on average between $183,000 – $482,000 to start a Fat Shack franchised restaurant.
This includes expenses related to construction, kitchen equipment, initial inventory, and other startup operating costs. The total investment can vary based on several elements, such as the specific Fat Shack restaurant format, the geographic location, and whether the franchisee opts to lease or buy the premises.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $35,000 |
| Lease Costs | $4,000 – $15,000 |
| Space Acquisition and Leasehold Improvements | $50,000 – $200,000 |
| Architectural Design and Professional Fees | $2,500 – $20,000 |
| Furnishings and Equipment | $40,000 – $90,000 |
| Signs | $5,000 – $12,500 |
| Computer, Software and Office Equipment | $750 – $2,000 |
| POS System | $6,000 – $12,000 |
| Security Surveillance System | $500 – $4,000 |
| Opening Inventory and Supplies | $6,000 – $15,000 |
| Smallwares and Print Materials | $9,500 |
| Security Deposits, Utility Deposits, Licenses | $3,000 – $10,000 |
| Lease Review Fee | $0 – $750 |
| Pre-Opening Hiring and Training | $3,000 – $10,000 |
| Opening Marketing | $1,000 – $10,000 |
| Business Insurance | $2,000 – $6,000 |
| Additional Funds – 3 months | $15,000 – $30,000 |
| Total Estimated Initial Investment | $183,250 – $481,750 |
Average Revenue (AUV)
How much revenue can you make with a Fat Shack franchise? A Fat Shack franchised restaurant makes on average $805,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $1,518,000 yearly revenue for similar burger franchises. Below are a few Fat Shack competitors as a comparison:
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Fat Shack Franchise Disclosure Document
Frequently Asked Questions
How many Fat Shack locations are there?
As of the latest data, Fat Shack operates 29 locations across 13 U.S. states, comprising 5 company-owned and 24 franchised restaurants.
What is the total investment required to open a Fat Shack franchise?
The total investment required to open a Fat Shack franchise ranges from $183,000 to $482,000.
What are the ongoing fees for a Fat Shack franchise?
Fat Shack franchisees are required to pay a royalty fee of 6% of gross sales. Currently, there is no mandatory marketing or advertising fee; however, the franchisor reserves the right to implement a brand fund contribution of up to 1.5% of gross sales in the future.
What are the financial requirements to become a Fat Shack franchisee?
To become a Fat Shack franchisee, you should have a minimum of $15,000 in liquid capital available for investment.
How much can a Fat Shack franchise owner expect to earn?
The average gross sales for a Fat Shack franchise are approximately $0.81 million per location. Assuming a 15% operating profit margin, $0.81 million yearly revenue can result in $122,000 EBITDA annually.
Who owns Fat Shack?
The Fat Shack franchise is owned by its co-founders, Tom Armenti and Kevin Gabauer. Tom Armenti serves as the Chief Executive Officer, while Kevin Gabauer holds the position of Owner.
Disclaimer
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