What articles and sections of the Fat Shack Franchise Agreement and Development Agreement cover the franchisee's fee obligations?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section in Agreement | Item in Disclosure Document | |
|---|---|---|---|
| (f) Fees | Articles 4 and 5, and Sections 3.3, 6.3, 7.2, 10.1.d, 10.2, 11.4, 13.3, 14.4, 14.5, 16.4, 16.5, 17.2, 18.4, 19.4, 19.11, and 21.3 of FA; Article 2 of Development Agreement (“DA”) | Items 5, 6, 7 and 10 |
Source: Item 9 — Franchisee's Obligations (FDD pages 26–28)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, Item 9 outlines the franchisee's obligations, including those related to fees. The specific sections in the Franchise Agreement (FA) and Development Agreement (DA) that detail these fee obligations are listed in a table.
Specifically, the franchisee's fee obligations are covered in Articles 4 and 5, and Sections 3.3, 6.3, 7.2, 10.1.d, 10.2, 11.4, 13.3, 14.4, 14.5, 16.4, 16.5, 17.2, 18.4, 19.4, 19.11, and 21.3 of the Franchise Agreement. Article 2 of the Development Agreement also pertains to franchisee fee obligations.
Prospective Fat Shack franchisees should carefully review these sections of the agreements to fully understand all fee obligations, including initial franchise fees, royalties, advertising fees, and other potential costs. Understanding these obligations is crucial for assessing the financial viability of the franchise and ensuring compliance with the franchise agreement.