Do you have doubts about the Fat Shack but aren’t sure if it’s the right business opportunity for you? Don’t worry; we’ve got it all covered. In this article, I’ll go over the cost and profit of owning a Fat Shack franchise, recent customer reviews, and the opportunities that it provides.
Not only will you get an idea of what to expect with this venture, but you’ll also learn why many entrepreneurs are making the switch to owning a Fat Shack. Plus, I’ll discuss how to get started and what steps to take next. So make sure to stick around—by the end of this article, you’ll have all the details needed to make an informed decision about the Fat Shack franchising!
As of 2021, Fat Shack had an annual revenue of around $17.5 million. The chain has experienced growth, with a 21.6% increase in locations in 2021, bringing the total unit count to 20. The company’s revenue per employee is approximately $230,829, and its annual revenue growth since its founding has been about $1,461,916.
What is the Fat Shack?
Have you heard about the Fat Shack? It’s a fast-casual burger and wings restaurant that can be found in several states across the U.S. and is known for its delicious, high-quality burgers and wings.
What sets the Fat Shack apart from other fast food restaurants? Well, they offer incredibly fresh ingredients—all their patties are made with 100% premium ground beef, with no filler added. In addition, the wings are all jumbo-sized and double-fried for maximum flavor and crispiness.
They also emphasise convenience—most locations have a drive-thru option for customers who don’t have time to park and dine inside. They have many creative flavors in their burgers, like Bacon Jam, and a “Create Your Own” option that allows customers to add and remove ingredients of their choice, such as sauces, toppings, and sides. Their menu also offers plenty of vegan, vegetarian, and gluten-free options. You can even enjoy “Burger Bowls” as a healthier meal alternative!
Is Fat Shack a franchise opportunity?
If you’re looking for a good business opportunity. The good news is that Fat Shack is indeed a franchise; in fact, it’s one of the most popular franchises out there. That means you can join forces with this established, successful business and reap the rewards.
So what makes Fat Shack such an attractive opportunity? A few main reasons include:
- Robust training and ongoing support: all of their franchisees receive comprehensive training and ongoing support so they can make their businesses successful.
- Low start-up costs: when you invest in a Fat Shack, you don’t have to worry about spending an outrageous sum of money; the start-up cost can actually be quite low.
- High margins: with great food and loyal customers, there’s no doubt that Fat Shack offers its franchisors excellent profits.
- Great brand recognition: having been around since 2005, Fat Shack has earned its place as one of the most popular fast-food franchises in the country.
If you’re looking to invest in a proven business model that has low overhead costs and plenty of opportunities for growth, then Fat Shack could be the perfect choice for you. All you need to do is get your hands on one of their Franchise Disclosure Documents (FDD) to learn all about the opportunity and decide if it’s right for you!
Facts That Nobody Told You About Fat Shack
Hey, did you know that a Fat Shack can be more than just a fast food restaurant? Sure, you’ll get to serve up delicious sandwiches, burgers, wings, and fries—but you can also capitalise on catering options that your customers might not even think of.
You can start small with in-store catering and take orders for any large events that come your way. But you don’t have to stop there. Here are some facts that nobody told you about a Fat Shack
- You can offer catering services for huge events like festivals, corporate functions, and even weddings.
- A Fat Shack allows you to collaborate with other local businesses to cross-promote each other’s offerings.
- You can also set up shop at sporting events or farmer’s markets for an added boost in business!
- Take advantage of online ordering apps for online ordering and delivery services—you don’t even have to leave your store to get additional business!
- If you have the extra space, consider setting up a bar with beer or wine—your customers will love it!
With so many options available at a Fat Shack, you can be sure that there are lots of opportunities out there waiting for you!
Fat Shack Franchise Review and Information |
|
| Industry Type | Food Franchise Opportunities |
| Sub Category | Burger Franchise Opportunities |
| Year Established | 2010 |
| Company Name | Fat Shack |
| Founder/Management Head | Tom Armenti |
| Franchising Started | 2015 |
| Employees at Company H.O | – |
| Franchise Expansion Plan | US |
| Number of Units | 27+ as of 2022 |
| Number of Franchise Units | – |
| Social Media Handles | |
| Youtube | |
| Company Office location | 706 S. College Ave., Fort Collins |
Fat Shack Franchise Requirements
So, you’re interested in starting your own Fat Shack ? That’s a great decision, as the franchise offers lots of opportunities for success.
But before you can launch your new business venture, there are a few things you’ll need to meet in order to qualify for the franchise. Here’s a quick overview of what these requirements are:
- Finances
To become a Fat Shack franchisee, you must be able to invest at least $250,000 into the business—that money will cover your initial franchise fee plus additional costs such as store equipment, supplies, and signage.
- Experience
You should have at least 1–2 years of experience in restaurant management or general business ownership. This experience can include working as an assistant manager or higher at a large restaurant chain or owning and operating your own business.
- Location
It’s important to pick an ideal locations for your Fat Shack franchise, and that means selecting one near residential neighborhoods and high-traffic areas like schools, hospitals, and shopping malls. This is key to driving sales and customers into the store.
- Training
Lastly, you must complete the required training courses offered by Fat Shack. The courses will teach you all about operations, customer service, managing staff, and more so that you have the knowledge needed to properly run your store. You’ll also receive support from the corporate office throughout the entire process.
How much does a Fat Shack franchise cost?
If you’re considering franchising with Fat Shack, you’re likely wondering what it’s going to cost. The overall cost of getting a Fat Shack franchise up and running in the United States can vary significantly, but here are some hard numbers you can use to get an idea of the investment level required:
- Franchise Fee
You’ll need to pay a franchise fee of up to $30,000. This is a one-time lump sum that covers the rights and materials you need to securely open and operate your store.
- Startup Costs
Startup costs can range from approximately $118,500 to $354,000. These costs include rent and utilities, equipment, inventory, insurance payments, marketing expenses, and more.
- Other ongoing costs
Fat Shack has a royalty fee of 6% of gross sales, which is a recurring fee paid to the franchisor for ongoing support and use of the brand. In addition, there’s an advertising fee of 2% of gross sales, which goes towards the promotion and marketing of the brand. These fees are standard in franchise agreements and contribute to maintaining the brand’s reputation and driving customer traffic to the locations.
The number of fees associated with running a Fat Shack means it’s important that you know exactly what is expected before taking the plunge—doing your research ahead of time will help ensure that you understand the entire financial picture before making any investments.
Fat Shack Franchise Price and Costs |
|
| Fat Shack Franchise Fee | $30,000 |
| Fat Shack Franchise Cost | $118,500 to $354,000 |
| Royalty Fee | 6% |
| Advertising Fee | 2% |
| Term of Agreement | 10 years |
| Is franchise term renewable? | Yes |
How much do Fat Shack franchise owners make?
Each Fat Shack franchise locations are different, and its success depends on a variety of factors, including the location of the restaurant, the type of customers they serve, and how well they are managed. The Average annual Fat Shack franchise makes a revenue of $1,461,916.
So there you have it—if you’re looking for an opportunity to make a great income as a Fat Shack franchise owner, the potential is definitely there. Just make sure that you do your research and understand all aspects of owning a restaurant before taking the plunge!
What is Fat Shack franchise profit?
I will analyze the Fat Shack franchise profit and years to recoup the investment (ROI).
| AUV | Estimated Annual Profit (12.5%) | Estimated Annual Profit (15%) | Estimated Annual Profit (18%) |
| $ 1,461,916 | $ 1,82,739 | $ 2,19,287 | $ 2,63,144 |
| Recoup mid-point$ 2,95,500 | 1.6 years | 1.3 years | 1.1 years |
The estimated Fat Shack franchise profit is in the range of $1,82,739 to $2,63,144 and it will take 1.1 to 1.6 years to recoup the investment.
Fat Shack Training for Franchises
If you’re thinking of joining the Fat Shack family, you should know that they offer their franchisees a comprehensive training program. This includes two weeks at the corporate store to learn store operations and training sessions online to get up and running on the right foot.
Once you become a part of the family, you get access to:
- Business coaching and marketing assistance
- Ongoing brand quality control
- Proven systems for success
- Customised support and mentorship from experienced franchisees
- An initial start-up package includes equipment, décor, and supplies to get you started.
- Access to exclusive deals and discounts with vendors
- Hands-on training from experts in the field
- A digital platform to manage your business operations from anywhere
The Fat Shack prides itself on putting its franchisees first, so you can rest assured that even after you receive your initial training, there’s still help available when needed. Whether it’s online marketing support or simply advice on how best to manage your staff, Fat Shack has got your back every step of the way.
Fat Shack Operations for Franchises
You might not know all the ins and outs of what this could mean for your business. Here’s a closer look at the operations and franchise opportunities for those looking to get in on the action at Fat Shack.
- Operations
Fat Shack locations provide customers with an array of craft burgers, premium milkshakes, wings, salads, and more. This means that customer service and restaurant operations are key components of a successful Fat Shack franchise. When it comes to daily operations, you’ll need to properly manage staff, supplies, inventory, and customer relationships — all while ensuring quality standards are met every time.
- Franchise Opportunities
If you’re looking to get into the Fat Shack, there are some things you should know. In order to qualify as a potential franchisor, you’ll need:
- A net worth of at least $500k
- At least $250k in liquid assets
- Restaurant operations experience
- A minimum investment of $118,500 to $354,000 depending on location and size.
- Access to capital is sufficient to support multiple restaurant openings.
- knowledge or experience in multi-unit restaurant ownership or operation
How are Fat Shack franchise locations granted?
If you’re interested in a Fat Shack franchise, you may be wondering how territories and locations are granted. The good news is that your location isn’t typically restricted by your territory—you can take your business where the customers are.
There are certain restrictions, however. Fat Shack franchises have an exclusive territory within a three-mile radius of their location. This ensures that no two franchises are too close together and that there is enough room to grow.
Plus, when you sign up for a Fat Shack, you’ll have access to our mobile app, which allows customers to order online, pick up in-store, or have their order delivered right to their door. This helps you easily expand your reach beyond the 3-mile radius!
To ensure fairness in distribution and enough opportunities for existing and future franchisees, each territory is assigned through the head office based on our criteria. This includes:
- Population density: areas that require multiple stores and locations due to high demand
- Geography: access to highways or major thoroughfares for easy delivery or commute for customers
- Market saturation: established chains or restaurants already occupying the area’s dining landscape
- Economic factors: minimum household incomes needed to support the franchise
- Business potential: potential sales volume through delivery services, catering services, online ordering, etc.; plus potential to offer additional services such as beer and wine orders.
Fat Shack’s franchising team works hard to ensure that each franchisee gets an equal shot at success when joining our family. So if you’re looking into opening a Fat Shack of your own, now’s the time!
What is the term of the franchise agreement and renewal?
If you’re considering a Fat Shack, you should know the general terms of the agreement. The initial term of the agreement is 10 years, with the option to renew for another 5-year period if both parties mutually agree.
You’ll also be required to pay a transfer or renewal fee if you want to assign the franchise first to someone else or later renew for the additional 5-year term. This fee varies based on your location and type of restaurant.
Overall, signing up for a Fat Shack franchising agreement gives you access to continued support from the franchisor in all areas, including marketing, operations, and strategy.
Does Fat Shack provide financial funding to franchises?
When investing in a franchise, you’re probably wondering if financial assistance is available. You’ll be happy to learn that Fat Shack does indeed provide financial assistance to qualified applicants.
Some of the different types of financing help that Fat Shack offers include
- Small Business Administration (SBA)-backed loans
- Grants to meet business start-up costs
- Vendor financing and leasing options
- Strategic partner financing
- Credit cards
- Traditional bank loans
In order to be eligible for assistance, you must meet all the company’s criteria. This includes having a solid credit record and sufficient liquid capital available for your franchise venture. Fat Shack also requires that you have specific management experience, which makes the franchise application process easier.
Plus, in addition to providing financial assistance, the company also helps its franchisees with any ongoing operational needs by offering training and support services. By taking advantage of these services, franchisees can get help when it comes to business planning, marketing strategies, and more. This is just one of the many reasons why many potential entrepreneurs choose Fat Shack as their business opportunity—not only can they receive financial help but also professional advice in setting up their businesses.
Pros and Cons of Owning a Fat Shack Franchises
If you’re considering owning a Fat Shack, you likely want to know the pros and cons.
Pros:
- Low initial investments—as low as $50K and up to $350K depending on the size of the franchise and location.
- Comprehensive two-week training program: You’ll be able to get up and running quickly and keep your business running smoothly. Plus, Fat Shack offers ongoing support after you open your doors.
- Proven business model: More than 50 locations across 12 states have helped Fat Shack become one of the fastest-growing franchises in the US.
Cons:
- Low-profit margins: You may have to convert more leads or put in some very long hours to make your franchise profitable.
- Limited markets: If you plan on opening a Fat Shack outside of their current markets, you may be facing a longer wait for the approval.
- Stiff competition: since many states already have an abundance of fast food options, it can be hard to stand out from the rest.
What are Fat Shack franchise reviews?
One of the best ways to determine whether franchising with Fat Shack is right for you is to see what others have had to say about their experiences. Fat Shack reviews are overwhelmingly positive, with former franchisees citing the training period as thorough and comprehensive.
In addition, current franchisees appreciate the support that they receive from corporate, with consulting and advice available on a wide range of topics such as operations, marketing, and more. Many existing franchise owners have also commented on how supportive the franchisor has been throughout every step of their business journey.
Plus, customers love the variety of delicious food that Fat Shake has to offer at great prices. Franchise reviews are filled with raves from people who have enjoyed the wide selection of savory burgers, sandwiches, French fries, and milkshakes that they offer!
Fat Shack has received attention for its menu items, which are known for being indulgent and often combining multiple comfort foods. The chain’s unique offerings have helped it secure a $250,000 investment from Mark Cuban on the TV show ‘Shark Tank’. Customer reviews on sites like Yelp and Google generally show that Fat Shack locations are well-received, with many locations receiving 4 or more stars out of 5.
While this information does not directly address franchise owner reviews, it does give you an idea of the company’s reputation and customer satisfaction. If you’re considering becoming a Fat Shack franchise owner, it’s a good idea to reach out to current franchisees and ask them about their experiences.
Fat Shack Rankings
Are you considering a Fat Shack ? A great place to start is to take a look at the rankings. Not only will you get an idea of how people perceive the business, but you’ll also be able to compare Fat Shack to similar businesses in the same market category.
When it comes to the rankings, Fat Shack has consistently been rated highly. According to surveys conducted by Franchise Business Review and Entrepreneur Magazine, Fat Shack was ranked in the top 25 franchises for growth with an impressive score of 4.1 out of 5 stars—that’s pretty good! Franchise Business Review also states that 93% of surveyed franchisees were satisfied with their decision to purchase a Fat Shack.
So what does this mean for potential franchisees? The combination of high scores and satisfied customers means that well-run Fat Shack franchises can provide solid returns on investment—and that’s definitely something worth considering when looking into franchising opportunities.
Franchise Deck Analysis and Overview
The next step in your Fat Shack journey is to do an extensive deck analysis and overview. This means looking at the location, local population and demographics, projected growth rate, sales volume by menu items, and any other relevant factors. This will give you an idea of how much potential your particular Fat Shack has.
It’s also important to weigh the potential risks associated with investing in a Fat Shack. Franchise costs can add up quickly, and there’s no guarantee of profits. You’ll need to take into consideration operating costs, unanticipated expenses, competition, and market conditions at the time of launch.
Doing a full analysis and overview is probably the best way to go if you’re serious about investing in a Fat Shack. You’ll be able to evaluate whether or not the franchise cost is worth it when considering all of the associated risks and potential rewards.
Fat Shack Franchise Success and Failure Rate
The below table will highlight the Fat Shack’s success and failure rate for the last 3 years. This will supplement your decision-making process.
| Year | Format | Start | End | Change |
| 2019 | Franchise Owned | 8 | 9 | +1 |
| Company Owned | 2 | 2 | 0 | |
| 2020 | Franchise Owned | 9 | 13 | +4 |
| Company Owned | 2 | 2 | 0 | |
| 2021 | Franchise Owned | 13 | 18 | +5 |
| Company Owned | 2 | 4 | +2 |
Competition Analysis of Fat Shack Franchises
| Fat Shack | Cost to Franchise | Franchisee Fees | Royalty + Ad fees | Expected Profit | Recoup of Capital | FD Rating |
| Fat Shack | $118,500 to $354,000 | $30,000 | 6%+2% | $1,461,916 | 1.1-1.6 years | 4.1/5 |
| FatBurger Franchise | $462,000-$770,000 | $50,000 | 6%+4% | 10-15% of gross revenue | – | 4/5 |
| $1,242,200 to $3,537,700 | $45,000 | 5%3.25% | 13% | 14.5 years | 3.5/5 | |
| Burger King Franchise | $1,790,800 – $4,194,700 | $50,000 | 4.5% 4% |
16% | 8 to 12 years | 3.8/5 |
| Five Guys Franchise | $306,200 to $641,250. | $25,000 | 6% | $136,344 to $272,688 | 4 to 6 years | 4.1/5 |
| Wendy’s franchise | $2-$3.5 million | $40,000 | 4% | $ 330490 to $ 440653 | 8 to 12 Years | 3.9/5 |
The Franchise Deck rating for the Fat Shack franchise is 4.1/5.0.
Conclusion: Should You Buy the Fat Shack franchise For Sale?
So, is the Fat Shack franchise worth it? In conclusion, the Fat Shack franchises have demonstrated growth and success in the fast-casual sandwich restaurant industry. With its unique and indulgent menu offerings, the brand has attracted a loyal customer base and even secured a substantial investment in the popular TV show, ‘Shark Tank.’ The initial investment and ongoing fees, such as the royalty and advertising fees, are in line with industry standards. While we couldn’t find specific franchise rankings, Fat Shack’s expanding presence in the United States indicates a promising future for the company.
For prospective franchisees seeking a distinctive and growing brand in the fast-food market, the Fat Shack franchises could be a worthwhile investment. However, it’s crucial to conduct thorough research, review the Franchise Disclosure Document (FDD), and speak with current franchise owners to make a well-informed decision.
Overall, with its low risk and high potential returns, it’s hard not to recommend considering a Fat Shack franchising as an option when looking into franchising opportunities. With that said, always do your own due diligence before making any long-term commitments!
Entrepreneurs who want to open a franchise in the burger franchise opportunities can look at
- Whataburger Franchise
- Mcdonald’s Franchise
- Burger King Franchise
- Burger Village Franchise
- Hardee’s franchise
- 5 guys franchise
- Wayback burger franchise
- Wendy’s Franchise
- In and Out franchise
- Sonic Franchise
- Jack in the Box franchise
- Mr.Beast Burger franchise
- Freshii franchise
- Fazolis Franchise
- The Cheesecake Factory Franchise
- Pizza King Franchise
- Potato Corner Franchise
- Hummus Republic Franchise
Frequently Asked Questions (FAQs)
If you’re considering buying a Fat Shack franchises, there are probably some questions on your mind. After all, this is a big investment, and it’s important to have all the facts before making such a huge decision. We answered some of the most common questions people have about Fat Shack franchises below.
- Is the Fat Shack franchises profitable?
Yes! Fat Shack franchises can be extremely profitable. The restaurant industry is booming, and customers love the food that Fat Shacks offers.
- Is Fat Shack a franchise?
Yes, it is! You can buy an existing franchise or open a new one in your area.
- How much is a Fat Shack franchises?
The cost of a Fat Shack franchises varies depending on your location and other factors, but the average initial investment ranges from $118,500 to $354,000; This includes startup costs like real estate, equipment, staff training, and advertising.
- How do Fat Shack franchises make money?
Fat Shacks make money by selling delicious food like burgers and fries to customers in their local area. Franchises also make money through franchising fees—franchisees are required to pay royalties to their franchisor for using their brand name, logos, and recipes.
- Can you make money owning a Fat Shack?
Yes! As long as you choose an ideal location for your business—one with plenty of foot traffic—and build up an engaged customer base with quality customer service, you should be able to turn a profit from owning one of these restaurants.
