Who benefits from the provisions outlined in the Fat Shack franchise agreement rider?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
If any one of the following Riders to the Franchise Agreement for Specific States and Provinces ("Riders") is checked as an "Applicable Rider" below, then that Rider shall be incorporated into the Franchise Agreement entered into by FAT SHACK INC. and the undersigned Franchisee. To the extent any terms of an Applicable Rider conflict with the terms of the Franchise Agreement, the terms of the Applicable Rider shall supersede the terms of the Franchise Agreement.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to the 2025 Fat Shack Franchise Disclosure Document, the Riders to the Franchise Agreement for Specific States and Provinces benefit both Fat Shack Inc. and the franchisee. These riders are incorporated into the franchise agreement if they are marked as "Applicable Rider."
The riders address specific legal requirements or conditions that may exist in certain states or provinces. By including these riders, Fat Shack ensures that the franchise agreement complies with local laws, which protects both the franchisor and the franchisee from potential legal issues.
The FDD states that if there are conflicting terms between the rider and the franchise agreement, the terms in the rider will take precedence. This ensures that the franchisee is protected by the specific provisions required by their state or province. However, Fat Shack retains the right to contest the validity or applicability of these provisions in any action relating to the Development Agreement or its termination.