Does Fat Shack acknowledge that franchisees may face competition from Fat Shack's Special Venues and Channels?

According to Fat Shack's 2025 Franchise Disclosure Document, Fat Shack acknowledges that franchisees may face competition from its Special Venues and Channels. Fat Shack and its affiliates retain the right to market and sell products and services through various channels outside of traditional franchised locations, including grocery stores, wholesale distributors, coffee shops, and online platforms, collectively known as "Special Venues and Channels."

These Special Venues and Channels may offer the same or similar products as the franchised Fat Shack restaurants, potentially creating direct competition. These alternative venues can be located in close proximity to a franchisee's restaurant, even within their protected territory. The prices offered at these Special Venues and Channels may also differ from those at the franchised locations, which could impact a franchisee's ability to compete on price.

Fat Shack franchisees specifically acknowledge and understand that Fat Shack and its affiliates have the right to market, offer, and sell products and services through Special Venues and Channels without regard to location. This acknowledgment highlights a potential risk for franchisees, as they may face competition from these alternative distribution channels, even within their protected territory. Prospective franchisees should carefully consider the implications of this non-exclusive arrangement and its potential impact on their business.