Fat Shack is a quick-service sandwich restaurant specializing in “Fat Sandwiches,†burgers, wings, and late-night delivery. The franchise serves dine-in, takeout, and delivery customers.
Key Insights
- Born from a college student's late-night cravings, the franchise has grown from a single campus location into a recognized name, specializing in a comfort food menu built around sandwiches, wings, and a variety of fried items, aiming to satisfy diverse appetites.
- The business operates with a model that emphasizes accessible, value-driven comfort food, often found in proximity to student populations and urban centers, providing a convenient and popular dining option for a broad customer base seeking familiar and satisfying meal choices.
- Operating within the competitive fast-casual and quick-service restaurant sector, the franchise caters to a market segment focused on hearty, indulgent, and convenient food, aligning with consumer trends for readily available and satisfying meal solutions.
Franchise Fee and Costs to Open
Exploring the financial picture of Fat Shack gives insight into both the upfront commitment and the potential revenue opportunity. According to FDD Item 7, opening this franchise typically involves an investment in the range of $183,250 - $487,600, along with a franchise fee of $35,000 - $35,000.
Financial Performance and Revenue
Yearly gross sales of $804,829 and estimated earnings of $96,580 - $120,725 show the potential financial performance of this franchise. These figures are crucial for prospective franchisees as they help to project revenue and profitability. They offer insight into the business's ability to generate income and can be used to compare its performance against other investment opportunities. The Franchise Payback Period of 3.6-5.6 provides an estimation of the time it might take for an owner to recover their initial investment. This metric is a key consideration for anyone evaluating the financial viability of a franchise, as it relates directly to the speed at which the business can become profitable. A shorter payback period can indicate a faster return on capital, which is a significant factor in making an informed decision about a franchise investment.
Training and Resources
Fat Shack provides comprehensive training for new franchisees. Initial training offers a deep dive into operations and brand standards, typically lasting two weeks and conducted at a Fat Shack corporate location. The franchisor also offers a robust library of operational resources and ongoing support to help franchisees establish their business.
Legal Considerations
Legal considerations for a Fat Shack franchisee are defined by the Franchise Disclosure Document (FDD) and the Franchise Agreement. This franchise does not disclose lawsuits or bankruptcy information in its FDD, but prospective franchisees should still review all terms thoroughly. Consultation with a qualified attorney is essential before making commitments.
Challenges and Risks
A franchisee may encounter considerations regarding local market competition, requiring differentiation strategies to attract customers. Operational complexity, from managing staff to maintaining food quality standards, presents an ongoing focus. Reliance on specific supply chains means ensuring consistent ingredient availability and cost management are paramount for sustained success.
Franchise Datasheet
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