Fat Patty's Franchise
Cost, fees, owner earnings, closure rate and litigation for a Fat Patty's franchise — pulled from the franchisor's own public FDD (2025), not its sales material.
Disclosure honesty
Fat Patty's discloses earnings (Item 19) — but the grade is how honestly. We graded it C.
What their own earnings claim actually says
Disclosed 2024 gross sales for 4 franchised outlets only (Jan-Dec 2024). Average $2.16M; Range $1.64M-$2.76M. Unaudited. Cherry-picking: minimal historical data; omits costs/expenses.
What a Fat Patty's franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $40,000 | Item 5 — paid up front, before you open |
| Royalty | 5% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 3% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 8% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $493,466 – $3,046,069 | Item 7 — franchisor's own low/high estimate |
Royalty 5% + Brand Fund 3% + local ad 2% minimum. 20+ other fees including training ($500/day), management (20% GR), audit, relocation, transfer.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Fat Patty's system size and owner turnover
| Total outlets | 5 |
| Ceased operations | 0 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 0 |
| Closure rate | 0.0% of outlets |
Only 5 franchised outlets at end 2024. Minimal terminations/closures. Transfers spike in 2023 (4) then zero.
From Item 20 of the FDD 2025. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Fat Patty's worth it? — how it compares to 164 similar franchises
| Ongoing fees | 8% of sales | lower than most (median 8%) |
| Startup cost | from $493,466 | about average (median $481,500) |
| Disclosure honesty | Grade C | typical for the category |
| Closure rate | 0.0% of outlets | better than most (median 1.3%) |
| Disclosed lawsuits | 4 | more litigious than 81% of peers |
Benchmarked against every quick service restaurants franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Fat Patty's
The franchisor's framing: Disclosed 2024 gross sales for 4 franchised outlets only (Jan-Dec 2024). Average $2.16M; R… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
Fat Patty's franchise — frequently asked
- How much does a Fat Patty's franchise cost?
- The FDD lists a total initial investment of about $493,466–$3,046,069, including a $40,000 initial franchise fee.
- How much do Fat Patty's franchise owners make?
- Disclosed 2024 gross sales for 4 franchised outlets only (Jan-Dec 2024). Average $2.16M; Range $1.64M-$2.76M. Unaudited. Cherry-picking: minimal historical data; omits costs/expenses. We grade this disclosure C for honesty.
- What are the Fat Patty's franchise fees?
- Fat Patty's FDD discloses a $40,000 initial franchise fee, a 5% royalty on gross sales, a 3% advertising-fund contribution, for roughly 8% of gross sales in recurring fees before rent, labor, or debt service. Royalty 5% + Brand Fund 3% + local ad 2% minimum. 20+ other fees including training ($500/day), management (20% GR), audit, relocation, transfer.
- What is the Fat Patty's franchise profit margin?
- Fat Patty's does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Disclosed 2024 gross sales for 4 franchised outlets only (Jan-Dec 2024). Average $2.16M; Range $1.64M-$2.76M. Unaudited. Cherry-picking: minimal historical data; omits costs/expenses. Recurring fees alone take about 8% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the Fat Patty's franchise failure rate?
- Only 5 franchised outlets at end 2024. Minimal terminations/closures. Transfers spike in 2023 (4) then zero.
- How many Fat Patty's locations are there?
- Fat Patty's FDD reports 5 total outlets, with 0 that ceased operations in the most recent reporting year and 0 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Fat Patty's have complaints or lawsuits?
- Fat Patty's discloses 4 legal matters in Item 3 of its FDD. Item 3 covers the franchisor's litigation history, which is the closest thing to a public record of how it treats franchisees — read the case descriptions, not just the count.
- Is a Fat Patty's franchise worth it?
- It depends on the numbers, not the pitch. Fat Patty's scores C on disclosure honesty, carries about 8% of sales in ongoing fees, and discloses 4 legal matters. Get the real owner take-home before you sign.
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Source: WI DFI Franchise Registration (2025). FranchiseValidate is independent and not affiliated with Fat Patty's or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.