Mr. Hat's Fancy Shop is initially at the Void Crater. People such as Leo and Dolly heard of the place, but the location was so remote that most couldn't find it. King Knight goes to Void Crater while on his way to get the Joustus Crown. There, he finds Mr. Hat, who asks for him to buy something. King Knight refuses and attempts to leave the Void Crater, but Mr. Hat follows after him and prevents him from leaving. Mr. Hat is consumed by his hat madness and fights King Knight in order to obtain his crown. After Mr. Hat is defeated, King Knight takes him and the Fancy Shop to the Glidewing. Later, the shop falls from the Glidewing and into the Armor Outpost.