Fat Shack serves a variety of indulgent sandwiches and comfort foods, offering a fun and satisfying dining experience.
KEY FRANCHISE STATS
Franchisees
?
28
+
17%
17%
Franchise fee
?
$35,000
Investment
?
$183,000 - $488,000
Revenue (AUV)
?
Undisclosed
$614,000
+
-31.0%
-31.0%
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Founded in 2010 by Tom Armenti in Fort Collins, Colorado, Fat Shackhas rapidly become a notable name in the fast-casual dining sector. The company is currently headquartered in Denver, Colorado. After opening its first location, Fat Shack began franchising in 2015, expanding its unique dining experience to various regions across the United States.
Fat Shack's menu is renowned for its "Fat Sandwiches," which are loaded with a variety of ingredients, offering a hearty meal option for customers. Beyond these signature sandwiches, the restaurant also serves burgers, wings, appetizers, desserts, and a selection of hot and cold beverages. This diverse menu caters to a wide range of tastes and preferences.
What sets Fat Shack apart from its competitors is its commitment to satisfying late-night cravings with an innovative and indulgent menu. The brand's focus on hearty, flavorful offerings has garnered a dedicated customer base, particularly among those seeking substantial meals during late hours. This distinct positioning in the market has contributed to Fat Shack's growing popularity and expansion.
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The initial investment required for a Fat Shack franchise is
$183,000 - $488,000.
That is the total cost you would need to finance if you were to start this franchise.
These costs are provided by the franchisor in the Franchise Disclosure Document.
For more information on the costs required to start a Fat Shack franchise, refer to the Franchise Disclosure Document (Item 7).
Type of Expenditure
Amount
Initial Franchise Fee
$35,000
Lease Costs
$4,000 to $15,000
Space Acquisition and Leasehold Improvements
$50,000 to $200,000
Architectural Design and Professional Fees
$2,500 to $20,000
Furnishings and Equipment
$40,000 to $90,000
Signs
$5,000 to $12,500
Computer, Software and Office Equipment
$750 to $2,000
POS System
$6,000 to $12,000
Security Surveillance System
$500 to $4,000
Opening Inventory and Supplies
$6,000 to $15,000
Initial Starting Package including Smallwares
$9,500
Security Deposits, Utility Deposits, Business Licenses
$3,000 to $10,000
Lease Review Fee
$0 to $750
On-Site Opening Assistance Fee
$0 to $5,850
Pre-Opening Hiring and Training of Employees
$3,000 to $10,000
Opening Marketing
$1,000 to $10,000
Business Insurance
$2,000 to $6,000
Additional Funds - 3 Months
$15,000 to $30,000
Total Estimated Initial Investment
$183,250 to $487,600
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For more information on the costs required to start a Fat Shack franchise, refer to the Franchise Disclosure Document (Item 7).
Type of Expenditure
Amount
Initial Franchise Fee
$35,000
Lease Costs
$4,000 to $15,000
Space Acquisition and Leasehold Improvements
$50,000 to $200,000
Architectural Design and Professional Fees
$2,500 to $20,000
Furnishings and Equipment
$40,000 to $90,000
Signs
$5,000 to $12,500
Computer, Software and Office Equipment
$750 to $2,000
POS System
$6,000 to $12,000
Security Surveillance System
$500 to $4,000
Opening Inventory and Supplies
$6,000 to $15,000
Initial Starting Package including Smallwares
$9,500
Security Deposits, Utility Deposits, Business Licenses
$3,000 to $10,000
Lease Review Fee
$0 to $750
On-Site Opening Assistance Fee
$0 to $5,850
Pre-Opening Hiring and Training of Employees
$3,000 to $10,000
Opening Marketing
$1,000 to $10,000
Business Insurance
$2,000 to $6,000
Additional Funds - 3 Months
$15,000 to $30,000
Total Estimated Initial Investment
$183,250 to $487,600
Franchise Disclosure Document
Below is Fat Shack's 2026 Franchise Disclosure Document. Sign up for free to view the document.
Number of units
Fat Shack had 31 total units in 2026, of which 28 were franchised-owned and 3 company-owned.
Fat Shack provides comprehensive training to its franchisees through multiple structured programs. Here are the main types of training offered:
Initial Training Program Franchisees, including the Managing Owner and designated General Manager, must complete an initial training program conducted at Fat Shack's facilities in Denver or Fort Collins, Colorado. This includes 5 hours of classroom instruction and 1 hour of on-the-job training, covering topics such as company history, marketing, sales, and operations. If it's the franchisee’s first location, an additional 30 days of on-site training at the new restaurant is included.
Replacement and Additional Manager Training If a new General Manager is hired during the franchise term, the franchisor (FSI) will provide the initial training program to them as well. The franchisee must pay tuition (based on current rates) and cover travel and living expenses.
Additional Meetings and Conferences Fat Shack may require franchisees or their management teams to attend additional meetings, seminars, or conferences throughout the term of the agreement. These sessions can include updates on operations, advertising, training methods, and promotional strategies. Attendance may be mandatory up to twice per year, and training fees can reach up to $1,000 per event.
Mandatory Food Safety Training Franchisees and their General Managers may be required to complete and pass a food safety and sanitation course either offered by Fat Shack or a third-party provider before beginning operations.
Territory Protection
Fat Shack grants its franchisees a defined geographic area known as a "Protected Territory," which generally extends in a three-mile radius from the front door of the restaurant.
Within this zone, the franchisor agrees not to open or allow another third party to open a Fat Shack restaurant, provided the franchisee remains in substantial compliance with the franchise agreement. This arrangement aims to provide some operational buffer and reduce direct competition from the brand within close proximity.
However, Fat Shack does not offer exclusive territorial rights. The franchisee may still face competition from other franchisees or company-owned outlets, as well as from alternative distribution channels controlled by the franchisor.
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