Can an Associate in a Fat Shack franchise agreement assign the agreement to another party?

Based on the 2025 Fat Shack Franchise Disclosure Document, the document outlines the requirements and restrictions regarding the transfer of rights under the Development Agreement, but it does not explicitly address whether an Associate can assign the Franchise Agreement to another party. The document states that the franchisee may transfer individual Franchise Agreements under certain conditions.

Specifically, the franchisee can transfer one or more individual Franchise Agreements, or assets of the Fat Shack Restaurants associated with these agreements, without transferring their entire interest in the Development Agreement. This is allowed as long as the Fat Shack Restaurants linked to the agreements being transferred are open and operating at the time of the transfer. In the event of a proposed sale, transfer, or assignment by the franchisee, both the franchisee and the proposed transferee must pay Fat Shack Inc. (FSI) the standard transfer fee for each franchise agreement to be transferred, as specified in the franchise agreement, plus $5,000 for each undeveloped franchise right without a Subsequent Franchise Agreement.

However, the FDD does not clarify whether an 'Associate' (defined as someone involved with the company as an officer, partner, director, manager, agent, employee, member, beneficial owner, or independent contractor) has the right to transfer or assign the Franchise Agreement. Since the document does not provide explicit information on this topic, it is important for a prospective franchisee to seek clarification from Fat Shack regarding the rights and limitations of an Associate in assigning the Franchise Agreement.