Does the Fat Shack Acknowledgment of Termination and Release Agreement mention any financial thresholds?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
as a franchisee;
- g. Unless waived or reduce by FSI in its sole discretion, Franchisee provides to FSI a plan acceptable to FSI in its sole discretion for the proposed transferee to receive a minimum of 10 days of on-site assistance, the exact length of which shall be determined by FSI. If approved by FSI, this on-site assistance may be provided in whole or in part by Franchisee. If some or all of this on-site assistance is provided by FSI, Franchisee or the proposed transferee shall pay FSI $500 for each day of assistance provided by FSI, which shall be in addition to the transfer fee noted below:
- h. Neither the transferee nor its owners or affiliates operate or have an interest in a Competitive Business (defined in Section 21.1);
- i. Franchisee's landlord allows Franchisee to transfer the FAT SHACK Restaurant's lease to the transferee;
- j.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to the 2025 Fat Shack Franchise Disclosure Document, the Acknowledgment of Termination and Release Agreement does not explicitly state any financial thresholds. However, it does mention financial considerations in the context of transferring a franchise. Specifically, if Fat Shack provides on-site assistance to the proposed transferee, the franchisee or transferee may have to pay Fat Shack $500 for each day of assistance.
Additionally, the document states that if the franchisee or its owners finance any part of the purchase price, the franchisee and/or its owners agree that all of the transferee's obligations under promissory notes, agreements, or security interests reserved in the Fat Shack Restaurant are subordinate to the transferee's obligations to pay fees and other amounts due to FSI and otherwise to comply with this Agreement.
While the document does not define specific financial thresholds in the Acknowledgment of Termination and Release Agreement, prospective franchisees should be aware of the potential costs associated with transferring the franchise, including transfer fees, training tuition, and potential payments for on-site assistance provided by Fat Shack. It is important to carefully review the terms of the Franchise Agreement and any related agreements to fully understand the financial implications of termination or transfer.