From the filings

+16.667% units YoYHQ-led decisions

Fat Shack

Quick service restaurant

Fat Shack franchises 31 sandwich shops out of Colorado — 28 franchised, 3 company-owned — with unit count up 16.7% year over year and average unit volume near $671,000. Item 11 of the 2026 FDD requires Apple Pay, giving a payments vendor a concrete mandate to point at.

For software vendors selling into US franchise brands.

Live signals

Total units
31
28 franchised
Unit growth YoY
+16.667%
vs prior filing
AUV
$671K
Item 19, 2025
Royalty
6%
of gross sales
Ad fund
national + local
Initial fee
$35K
per unit
Investment range
$183K–$488K
all-in, Item 7
Procurement
Approved supplier
from the filing
Non-compete
2 years
from the filing
Item 19
Claims
from the filing

Ongoing fee load

What the operator pays every month

The recurring percentage of gross sales named in this filing. It is a floor, not a total — the filing discloses one of the two headline fees.

6%+of gross sales (FY2026)

Ongoing fees: 6% of gross sales (FY2026)Royalty 6%. Total 6% of gross sales, from the fees this filing discloses. Drawn against a 15% reference scale.

15% reference

Royalty 6%

Mandated & recommended tech

The systems vendors compete with

1 of these are mandated in the franchise agreement. Each is named in Item 11 of the filing, the incumbents a challenger must displace or integrate with.

Apple PayApple
Mandatory
PaymentsItem 11

made available, we reserve the right to require that you purchase our proprietary software package. 23 4929-6332-8128 (Fat Shack - 1) You must accept credit cards, debit cards and Apple Pay from custo

Franchisor behaviours

What the franchisor requires

26 requirements the franchisor states in this filing, each in its own words; 4 explicit no's; 4 questions the text does not settle, which is not a no.

Accounting

Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?

Yes

Item 8

Each of our franchisees must also use operations and accounting software that have capabilities meeting our standards and specifications.

Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?

Yes

Item 11

We have the right to independently access all POS System information.

Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?

Yes

Franchise agreement

Within 15 days after the end of each month, an income statement of Franchisee’s FAT SHACK Restaurant for such month and for the fiscal year to date, prepared in accordance with generally accepted accounting principles (“GAAP”) consistently applied, in FSI’s recommended format;

How the franchisor buys

Is the franchisor or an affiliate itself a supplier of required products, services or systems?

Yes

Item 8

We are currently the sole approved supplier for this initial starting package as of the date of this Disclosure Document, but we reserve the right to require that franchisees purchase this package through an approved supplier in the future.

Does the franchisor reserve the right to change designated suppliers or systems at any time?

Yes

Franchise agreement

It is understood that FSI shall have the right, at any time and without notice, to add items to, or withdraw items from, the list of products required to be offered for sale in a FAT SHACK Restaurant; to add to or delete from the list of designated or approved suppliers of products; and to change the prices…

How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?

0

Item 8

During our last fiscal year (ending on December 31, 2025), we had no revenues from products and services provided to franchisees.

Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?

Yes

Item 8

We have the right to receive payments, rebates, commissions, incentives, or other benefits from suppliers on account of their dealings with you and other franchisees.

Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?

25

Item 8

approximately 25 to 50 percent of the total cost of operating a FAT SHACK Restaurant after that time

Does the franchisor charge a fee to evaluate a proposed supplier?

Yes

Franchise agreement

A charge not to exceed the actual cost of the test may be made by FSI and shall be paid by Franchisee.

Can a franchisee propose a new supplier for the franchisor's approval?

Yes

Franchise agreement

In the event Franchisee desires to purchase products, services, supplies or materials from manufacturers, suppliers or distributors other than those previously approved by FSI, Franchisee shall, prior to purchasing any such products, services, supplies or materials, give FSI a written request to change supplier.

Communications

Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?

Yes

Franchise agreement

Franchisee acknowledges that, as between Franchisee and FSI, FSI has the sole rights to and interest in all telephone, telecopy or facsimile machine numbers and directory listings, all domain names, and social media websites or accounts associated with any Mark.

Data and IT

Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?

Yes

Item 11

Therefore, you must be PCI compliant by following and adhering to the then-current PCI DSS, currently found at www.pcisecuritystandards.org, or any similar or subsequent standard for the protection of cardholder data throughout the term of your Franchise Agreement.

Franchise management

Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?

Yes

Franchise agreement

FSI may also require at any time the records from Franchisee or its affiliated parties be sent to FSI’s offices or another location to permit the inspection or audit of such records to be conducted at FSI’s place of business or the other location.

Can the franchisor change the operations manual and brand standards unilaterally?

Yes

Franchise agreement

Franchisee acknowledges that FSI may modify its standards and specifications and operating, marketing, and other policies and procedures set forth in the Operations Manual unilaterally under any conditions and to the extent in which FSI, in its sole discretion, deems necessary, and Franchisee shall be bound by such…

Must the franchisor approve the franchisee's site or location before opening?

Yes

Item 12

You may operate your FAT SHACK Restaurant and use the Marks and the Licensed Methods only at the Restaurant Location that has been approved by us.

Marketing

Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?

Yes

Franchise agreement

Franchisee shall not develop, create, distribute, disseminate or use any Internet advertising or website, or any multimedia, social media, telecommunication, mass electronic mail or audio/visual advertising, promotional or marketing materials (“Electronic Advertising”), without FSI’s prior written consent, which…

Is a minimum grand opening advertising spend required?

Yes

Franchise agreement

Franchisee agrees to conduct a grand opening advertising and promotional program for the FAT SHACK Restaurant at the time and in the manner specified by FSI.

Operations

Must the franchisee buy products from a designated distributor?

Yes

Franchise agreement

Franchisee shall purchase all equipment, products, services, supplies and materials required for the operation of the FAT SHACK Restaurant licensed herein, from manufacturers, suppliers or distributors designated by FSI or, if there is no designated supplier for a particular product, service, supply or material, from…

Must equipment be purchased from designated or approved suppliers?

Yes

Franchise agreement

Franchisee shall purchase all equipment, products, services, supplies and materials required for the operation of the FAT SHACK Restaurant licensed herein, from manufacturers, suppliers or distributors designated by FSI

Payments

Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?

Yes

Item 6

Before you open your FAT SHACK Restaurant, you must sign and deliver to us and your bank all documents needed to permit us to debit your bank account for each week’s Royalty and Marketing and Promotion Fees and other payments due under the Franchise Agreement or otherwise.

Must the franchisee participate in a gift card program?

Yes

Franchise agreement

Except as prohibited or limited by law, Franchisee shall fully participate in all promotional campaigns, prize contests, special offers, gift card programs, discount programs including deal-of-the-day and crowdsourcing programs, and other programs, whether international, national, regional, or local in nature…

People

Must employees wear uniforms specified by the franchisor?

Yes

Item 8

We provide you with our standards and specifications for the services and products offered at or through your FAT SHACK Restaurant and for the Restaurant Location, products, fixtures, inventory, inventory mix, ordering and storage procedures, uniforms, supplies, forms, advertising and marketing material, and other…

Point of sale

Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?

Yes

Item 8

You must purchase a designated POS System meeting our specifications.

Does the franchisor have independent access to the data in the franchisee's POS or computer system?

Yes

Item 11

We have the right to independently access all POS System information.

Training

Can the franchisor charge the franchisee for additional, refresher or remedial training?

Yes

Item 11

We may charge a tuition for attending additional training programs, which will not exceed $1,000 per Additional Meeting.

Is attendance at an annual convention or conference mandatory for the franchisee?

Yes

Item 11

As often as annually, you or your General Manager and other managers we designate may be required to attend, at your expense, a national convention which may include mandatory training sessions.

The filing answers no to 4 questions
  • Must the franchisee participate in a customer-satisfaction or net-promoter survey program?Franchise agreement
  • Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?
  • Must the franchisee participate in a customer loyalty or rewards program?Item 11
  • Must the franchisee participate in a regional advertising cooperative when one exists?Item 11

Who buys here

The buyer at this brand

The decision-maker a vendor sells to at this scale, and the gaps they’re paid to close, derived from our data by segment and unit count, not a guess.

Sales LeaderEmerging 20 99

The franchisor's owner/CEO decides; an ops or franchise-development lead may evaluate.

VP SalesHead of SalesCROSales Director
  1. 41.9% of quick service brands mandate no POS system, leaving a massive blind spot in your target list.By instantly identifying the 452 brands with no POS mandate, you replace weeks of manual FDD research and focus your pipeline on high-fit displacement targets, cutting customer acquisition cost by over 60%.
  2. 82.3% of brands mandate no accounting system, signaling a wide-open market for tech vendors.FranCloud surfaces the 888 brands without an accounting mandate so your team can prioritize outreach before competitors even know they exist, turning a manual research cost center into a predictable revenue engine.
  3. Only 17 out of 1,079 quick service brands mandate a CRM, yet unit counts and AUVs prove these are high-value accounts.Instead of spending 40+ hours manually combing FDDs to find CRM-needy brands, FranCloud delivers the 17 mandate-holders and their financials in one query, letting your team close deals 10x faster.

The vendor opportunity at Fat Shack Fat Shack franchises 31 sandwich shops out of Colorado — 28 franchised, 3 company-owned — with average unit volume near $670,000 and unit count up 16.7% year over year, the fastest growth rate in this set after Daisyco. Item 19 of the 2026 FDD makes a financial performance representation.

Who controls software purchasing Item 2 names Thomas J. Armenti and Kevin J. Gabauer as the franchisor's Principals. That two-person ownership team sets the Apple Pay mandate and the rest of the stack directly.

Tech named in the FDD, and what is actually required Item 11 requires Apple Pay — the one named system in this filing, and a hard mandate rather than a mention.

Procurement, renewals, and timing Item 8 runs an approved-supplier list: the initial starting package of smallwares, kitchen signage, take-out menus, promotional items, a stereo receiver and interior décor must come from the franchisor or an affiliate, while other products and services need only meet franchisor standards, and franchisees may propose an alternate supplier. The initial term is 7 years; renewal requires 180 days' notice, a signed successor rider with a release, full compliance, a fee, and a remodel where required.

How to read the Fat Shack FDD The full filing, filed with state franchise regulators in 2026, is embedded below. Talk to FranCloud for a ranked list of fast-growing QSR brands with a payments mandate worth building on.

Questions vendors ask

Fat Shack, answered from the filing

Item 2 names Thomas J. Armenti and Kevin J. Gabauer as the franchisor's Principals — the two-person ownership team that sets the Apple Pay mandate and the rest of the Fat Shack system.
Apple Pay is required under Item 11.
31 sandwich shops — 28 franchised and 3 company-owned — led by Colorado, Texas, Kansas, Florida and Georgia.
An approved-supplier list. The initial starting package — smallwares, kitchen signage, take-out menus, promotional items, a stereo receiver and interior décor — must come from the franchisor or an affiliate; franchisees may propose other suppliers for approval.
The initial term is 7 years; renewal requires 180 days' notice, a signed successor rider and release, compliance, a fee, and a remodel if required. With units up 16.7% year over year, new-location onboarding is the faster near-term entry point.
The full filing, filed with state franchise regulators in 2026, is embedded in the PDF viewer below.
Source

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Fat Shack2026 FDDView only

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The brands you can actually sell into, from the filings.

Operator footprint

Who runs the locations

33 operators run 36 mapped locations. 3 of them are multi-unit. Aggregate counts from the filing; no names.

Operators by units owned

Single-unit30
2–9 units3

Top states by locations

CO10
TX5
KS4
FL2
GA2

Related Quick service restaurant brands

Primary franchise filings · updated September 2026. Every figure is source-traceable and QA-checked.