Freddy Fazbear's Pizza

Freddy Fazbear's Pizza is the location in which Five Nights at Freddy's takes place.

According to several altered posters on later nights, an incident occurred where a man dressed in a Freddy Fazbear suit lured five kids into the back of Freddy Fazbear's Pizza and murdered them. He was eventually caught, but the children were never found.

In the present, the restaurant is actually set to be shut down later in the year; complaints from the Health Department about the aforementioned blood and mucus leaking from the suits, as well as the horrid odor, are allegedly the cause.

It's possible that it was an animatronic acting on its own that lured the children and murdered them. People wouldn't believe that explanation and an innocent man was believed to be the murderer instead.

As stated by the previous security guard, Freddy Fazbear's Pizza, during the day, was loved by many kids. Secondly, after each day the player survives, kids cheer as 6 AM approaches.

In Game
After Freddy Fazbear's Pizza suffered a loss in reputation from "The Bite of '87", the restaurant has been unable to earn a substantial amount of revenue. This resulted in the implementation of a power budget at night. It is also for these reasons that the establishment has decided to close down, or is being forced to close down, at the end of the year.

This means that electricity at night must be used wisely, as there is no further delivery of power during the night phase of the game. Using doors, lights, and even the security cameras will cause the power to drain depending on the player's power usage.

The player must survive all five nights to complete the initial game itself; however, upon completion, a sixth night is unlocked. Upon beating all six nights, a custom night is also unlocked where the player can set the difficulty of the AI from one to twenty.

Trivia

 * Freddy Fazbear's Pizza is very reminiscent of Chuck E. Cheeses, especially with the animatronic band.
 * "Five Nights at Freddy's" takes place in an unknown year (most likely years are 1989, 1995, 2000, or 2006) within the week of November 6th to November 13th, according to the check Mike gets at the end. The likelihood is that the game takes place in the early 1990's due to the minimum wage being around $4 an hour during that period. However the presence of a laptop/tablet camera viewer would be anachronistic in this time period, therefore leaving it entirely up to speculation.
 * The continued operation of Freddy Fazbear's Pizza flies in the face of logic, as the working conditions heavily violates laws regarding workplace safety and minimum wage requirements.