2010
40
$200,000
$35,000
$400,000
No
The Fat Shack franchise is redefining the fast-casual dining scene in America with its indulgent, crave-worthy comfort food served late into the night. Known for its over-the-top sandwiches, golden fried favorites, and signature shakes, Fat Shack has built a cult-like following among college students, night owls, and food lovers across the country. The brand offers a rare combination of fun, flavor, and profitability in a market that thrives on convenience and creativity.
Founded with a mission to “embrace the cheat meal,” Fat Shack blends the best of traditional American fast food with a playful and modern edge. The brand’s energy, loyal fan base, and proven operational model make it a standout in the quick-service restaurant (QSR) industry. With strong branding, a simple menu, and a focus on customer satisfaction, Fat Shack presents one of the most exciting and scalable restaurant franchise opportunities in the U.S. today.
Why Invest in This Franchise?
Investing in a Fat Shack franchise means joining a rapidly expanding brand that thrives in one of the most profitable sectors of the food industry — late-night dining. Here’s why it stands out:
Unique Concept: Fat Shack caters to a growing market of consumers seeking indulgent, high-quality fast food options during late hours — a niche with limited competition.
Proven Success: The brand has demonstrated consistent growth across college towns and metropolitan areas, supported by strong unit economics and repeat customers.
Simple Operations: The franchise model is streamlined with a straightforward menu, efficient kitchen layout, and minimal waste, making it easier to manage and scale.
Recognizable Brand: Featured on major media platforms including Shark Tank, Fat Shack gained national exposure and credibility, which continues to fuel its expansion.
High Demand: With increasing consumer demand for comfort food, delivery, and late-night bites, Fat Shack’s business model aligns perfectly with modern eating trends.
Established Year: 2010
Founders: Tom Armenti and Kevin Gabauer
Headquarters: Fort Collins, Colorado, USA
Franchise Category: Quick-Service Restaurant (QSR) / Fast-Casual Dining
Current Franchise Units: 40+ locations across the United States
The Fat Shack story began in 2010 when Tom Armenti, then a college student at The College of New Jersey, had a bold idea — to bring hearty, satisfying comfort food to late-night diners who wanted more than the usual fast-food options. Starting with just $5,000, Tom convinced a local bagel shop owner to let him use the kitchen after hours, and soon the first version of Fat Shack was born.
The concept quickly gained traction among students craving loaded sandwiches, burgers, wings, and deep-fried favorites available well past midnight. In 2011, Tom partnered with Kevin Gabauer, and together they opened the first official Fat Shack restaurant in Fort Collins, Colorado. From there, the brand began its journey from a late-night college favorite to a recognized national franchise.
In 2019, Fat Shack’s appearance on ABC’s Shark Tank became a turning point. The founders impressed investor Mark Cuban, who joined the brand as a strategic partner, providing the capital and mentorship to fuel its national expansion. Since then, Fat Shack has opened locations in Texas, Colorado, New Jersey, Washington, and beyond, becoming a go-to spot for anyone craving bold, unapologetically indulgent food.
Each Fat Shack location embraces the brand’s motto — “It’s time to get fat!” — by offering a menu that combines creativity, quality ingredients, and fun. The brand’s loyal following, social media buzz, and focus on high-quality service have positioned it as one of the fastest-growing fast-casual restaurant franchises in the country.
Today, Fat Shack stands out in the competitive U.S. restaurant and fast-food franchise industry for its strong identity, high consumer appeal, and successful franchise system. The company continues to attract entrepreneurs nationwide who are eager to join a brand built on passion, personality, and proven profitability.
Fat Shack is dedicated to helping every franchise partner build a thriving, profitable business from day one. The brand’s comprehensive support and training program ensures that franchisees receive all the knowledge, resources, and ongoing assistance needed to successfully operate a Fat Shack restaurant. From pre-launch planning to long-term operations, the Fat Shack corporate team provides hands-on guidance every step of the way.
Before your doors even open, Fat Shack’s team works closely with you to set up the foundation for success.
Site Selection Assistance: Expert guidance in identifying, evaluating, and securing high-traffic locations near universities, downtown districts, or nightlife areas—prime markets for Fat Shack’s late-night appeal.
Lease Negotiation & Build-Out Support: Help with lease terms, construction layouts, equipment installation, and interior design that aligns with the brand’s energetic, fun, and youthful atmosphere.
Vendor and Supply Chain Setup: Access to approved suppliers for ingredients, packaging, and branded merchandise to ensure consistency and cost-efficiency.
Pre-Launch Marketing Plan: The corporate marketing team assists in creating buzz around your opening through local events, press releases, influencer collaborations, and social media campaigns.
Fat Shack provides a robust training curriculum designed to make franchisees and their teams operationally ready and confident.
Initial Training: Conducted at an existing Fat Shack location, this intensive 3–4 week program covers all aspects of the business — from daily operations, kitchen management, and food safety to customer service and leadership.
On-Site Opening Support: Corporate trainers are present at your location during your first week of operations to guide staff, streamline workflow, and ensure smooth opening day execution.
Management & Staff Training Manuals: You’ll receive detailed operation manuals, employee handbooks, and recipe guides to maintain brand standards and consistency.
Ongoing Education: Regular webinars, refresher courses, and updates on menu innovations or new operational practices to keep your team performing at its best.
Fat Shack understands the power of strong branding and modern marketing strategies. Franchisees benefit from both national and local marketing efforts:
National Marketing Campaigns: Professionally produced digital, social media, and print campaigns run by the corporate team to strengthen brand visibility.
Local Store Marketing Guidance: Assistance in executing effective grassroots marketing tactics, including community events, college partnerships, sponsorships, and digital promotions.
Digital Integration: Support with online ordering platforms, third-party delivery partnerships (like DoorDash and Uber Eats), and social media engagement to attract and retain customers.
Promotional Materials: Ready-to-use marketing assets, including digital templates, posters, menus, and social media content to help you market efficiently.
Once your Fat Shack franchise is up and running, the corporate team remains actively involved in helping you manage operations effectively.
Dedicated Franchise Consultant: Each franchise owner is assigned a consultant who provides one-on-one operational support and business coaching.
Ongoing Performance Reviews: Regular check-ins and performance assessments to identify growth opportunities and ensure financial success.
Technology & POS Systems: Implementation of modern point-of-sale systems and analytics tools to streamline sales tracking, inventory management, and reporting.
Menu Development & Product Innovation: Continuous R&D to introduce new items, seasonal specials, and updated menu strategies to maintain customer excitement.
Fat Shack’s success is built on a strong sense of community and shared growth. Franchisees become part of a supportive network of owners who share insights and best practices through:
Annual Franchisee Conferences for networking, training, and strategy sessions.
Peer-to-Peer Support Channels that connect franchisees across regions for shared problem-solving and collaboration.
Corporate Communication Platform ensuring you’re always updated on brand initiatives, promotions, and operational changes.
Fat Shack is looking for passionate, motivated entrepreneurs who want to build a thriving business while being part of a fun, fast-growing restaurant brand. The ideal Fat Shack franchisee is someone who embraces the brand’s energy, understands customer satisfaction, and is ready to lead a team that delivers unforgettable food experiences.
Whether you’re an experienced restaurateur or a driven first-time investor, Fat Shack’s simple operations model and hands-on training make it possible to achieve long-term success with confidence.
Fat Shack franchise owners are people who love great food, community engagement, and hospitality. You don’t need a culinary degree, but you should be passionate about serving up indulgent comfort food that people crave. The ideal owner thrives on creating memorable customer experiences and enjoys the fast-paced restaurant environment.
They understand that success in the quick-service industry comes from energy, consistency, and a customer-first mindset — all of which align perfectly with Fat Shack’s culture.
Owning a Fat Shack means managing a dynamic team of kitchen staff and front-of-house employees. Franchisees should have leadership and communication skills to inspire and maintain a positive, efficient work environment.
While prior restaurant or retail management experience is helpful, it’s not mandatory. The franchisor’s comprehensive training ensures every operator learns how to run the business smoothly — from hiring and scheduling to customer service and quality control.
The ideal Fat Shack franchisee has a strong business sense and is committed to long-term growth. You should be comfortable with basic financial management, inventory control, and marketing execution.
Fat Shack franchisees are hands-on operators who stay involved in their business, understand local market trends, and make data-driven decisions. If you’re someone who’s willing to put in the effort and follow a proven system, Fat Shack offers exceptional potential for scalability — including multi-unit ownership opportunities.
Fat Shack franchise partners should be financially capable of investing in a restaurant business and supporting operations during the ramp-up phase.
Financial Requirements:
Minimum Liquid Capital: $150,000
Net Worth: $400,000+
Total Investment Range: $200,000 – $400,000
These requirements ensure that franchisees can comfortably handle startup costs, marketing budgets, and working capital while focusing on long-term profitability.
Fat Shack thrives in communities with college populations, active nightlife, and food-loving crowds. Ideal franchisees are outgoing, community-oriented individuals who love connecting with customers and promoting their brand locally.
You’ll fit right in if you’re the kind of entrepreneur who enjoys sponsoring local events, engaging with college students, supporting sports programs, and making your restaurant a late-night hotspot.
The most successful Fat Shack franchises operate in:
College towns with a strong student population
Downtown and urban areas with high foot traffic
Nightlife and entertainment districts that attract evening and late-night crowds
Delivery-driven suburbs where takeout and third-party apps drive consistent volume
If you’re an investor seeking a high-demand food franchise with national recognition, strong margins, and loyal customers, Fat Shack is an ideal fit.
The Fat Shack franchise offers a relatively low-cost entry into the high-demand fast-casual and late-night dining industry. With a proven business model, simplified operations, and strong profit potential, Fat Shack provides an appealing opportunity for entrepreneurs seeking both scalability and lifestyle flexibility.
Below is a detailed breakdown of the financial investment and operating costs associated with opening a Fat Shack franchise in the United States:
| Category | Estimated Cost (USD) | Description |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time fee granting franchise rights, use of the Fat Shack brand, trademarks, and full access to operational systems. |
| Total Initial Investment | $200,000 – $400,000 | Includes all setup costs — build-out, kitchen equipment, signage, marketing, and working capital. |
| Minimum Liquid Capital Required | $150,000 | Minimum available funds required to qualify as a franchisee. |
| Net Worth Requirement | $400,000+ | Ensures financial stability for long-term operations and growth. |
| Royalty Fee | 6% of Gross Sales | Ongoing fee paid to the franchisor for continued brand and operational support. |
| Marketing/Advertising Fee | 2% of Gross Sales | Contributed toward national and regional marketing campaigns managed by corporate. |
| Leasehold Improvements | $50,000 – $120,000 | Costs for interior construction, signage, décor, and brand-standard build-out. |
| Equipment, Fixtures & Supplies | $80,000 – $150,000 | Includes kitchen equipment, POS systems, furniture, and utensils. |
| Initial Inventory | $5,000 – $10,000 | First stock of food ingredients, packaging materials, and uniforms. |
| Pre-Opening Training & Travel | $5,000 – $7,000 | Covers travel and accommodation for attending corporate training sessions. |
| Grand Opening Marketing | $5,000 – $10,000 | Local promotional campaigns to generate awareness and drive opening-day traffic. |
| Working Capital (First 3 Months) | $25,000 – $50,000 | Funds reserved for operating expenses, payroll, and initial business ramp-up. |
| Technology & POS Systems | $3,000 – $7,000 | Setup costs for digital ordering, payment processing, and operational software. |
| Insurance, Licenses & Permits | $2,000 – $5,000 | Includes business licensing, food service permits, and liability insurance. |
| Average Revenue Streams | Varies by Location | Dine-in, takeout, delivery, catering, and late-night service. |
| Average ROI (Return on Investment) | 18% – 25% | Depending on location performance, local market demand, and operational efficiency. |
| Average Break-Even Period | 18 – 24 Months | Most franchisees achieve profitability within two years of opening. |
| Franchise Units (USA) | 40+ Locations and Expanding | Growing footprint across Texas, Colorado, New Jersey, Washington, and more. |
Additional Financial Notes
Multi-Unit Ownership Discounts: Investors opening multiple Fat Shack locations may qualify for reduced franchise fees and shared marketing costs.
Financing Options: Fat Shack’s franchising team can connect qualified candidates with third-party lenders experienced in franchise financing (including SBA loan programs).
Profit Potential: With strong late-night traffic, multiple revenue streams (dine-in, delivery, catering), and efficient operations, Fat Shack locations often experience strong margins compared to traditional QSR concepts.
