Who does Fat Shack appoint as its attorney in Illinois?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that, as between Franchisee and FSI, FSI has the sole rights to and interest in all telephone, telecopy or facsimile machine numbers and directory listings, all domain names, and social media websites or accounts associated with any Mark.
Franchisee authorizes FSI, and hereby appoints FSI and any of its officers as Franchisee's attorney-in-fact, to direct the telephone company and all telephone directory publishers, domain name registration companies, and social media website operators to transfer any telephone, telecopy or facsimile machine numbers, directory listings, domain names, and social media websites and accounts relating to the FAT SHACK Restaurant to FSI or its designee, should Franchisee fail or refuse to do so, and the telephone company and all telephone directory publishers, domain name registration companies, and social media website operators may accept such direction or this Agreement as conclusive evidence of FSI's exclusive rights in such telephone numbers, directory listings, domain names, and social media websites and accounts, and FSI's authority to direct their transfer.
- h.
Abide by all restrictive covenants set forth in Article 21 of this Agreement.
- i.
Pay all third parties all amounts then owed to them for products or services directly or indirectly related to the FAT SHACK Restaurant.
19.9. Terminology
For purposes of this Agreement, wherever the term "expiration" or "termination" is used, it is intended to refer to both situations, unless the context indicates otherwise. Any terms herein that apply upon expiration or termination shall also apply for a transferor upon a transfer.
19.10. State and Federal Law
THE PARTIES ACKNOWLEDGE THAT IN THE EVENT THAT THE TERMS OF THIS AGREEMENT REGARDING TERMINATION OR EXPIRATION ARE INCONSISTENT WITH APPLICABLE STATE OR FEDERAL LAW, SUCH LAW SHALL GOVERN FRANCHISEE'S RIGHTS REGARDING TERMINATION OR EXPIRATION OF THIS AGREEMENT. CERTAIN OF THESE LAWS ARE SET FORTH IN THE RIDERS TO FRANCHISE AGREEMENT FOR SPECIFIC STATES AND PROVINCES ATTACHED HERETO AS EXHIBIT VI.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the franchisee authorizes Fat Shack Inc. (FSI) and its officers to act as their attorney-in-fact. This authorization pertains specifically to directing telephone companies, directory publishers, domain name registration companies, and social media website operators to transfer any telephone, telecopy, or facsimile machine numbers, directory listings, domain names, and social media websites and accounts related to the Fat Shack restaurant to FSI or its designee.
This appointment as attorney-in-fact is conditional. It only comes into effect if the franchisee fails or refuses to transfer these assets themselves. The purpose is to ensure that Fat Shack Inc. can maintain control over the brand's presence and contact information, even if a franchisee becomes uncooperative.
This clause has significant implications for a prospective franchisee. It means that Fat Shack retains ultimate control over the restaurant's online and telecommunications presence. If a franchisee were to, for example, abandon the business or violate the franchise agreement, Fat Shack could quickly take control of the phone number and website without needing to go through a lengthy legal process. While this protects Fat Shack's brand, it also limits the franchisee's autonomy over these assets.
It is important to note that the FDD also states that in the event that the terms of the agreement regarding termination or expiration are inconsistent with applicable state or federal law, such law shall govern franchisee's rights regarding termination or expiration of the agreement. Certain of these laws are set forth in the riders to franchise agreement for specific states and provinces attached as an exhibit. Therefore, a franchisee in Illinois should consult Exhibit VI to understand how Illinois law impacts this appointment.