Besides the Fat Shack franchise agreement and disclosure document, are there any other statements, representations, or communications from FSI that are binding?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement contains the entire agreement between the parties and supersedes any and all prior agreements concerning the subject matter hereof. Franchisee agrees and understands that FSI shall not be liable or obligated for any oral representations or commitments made prior to the execution hereof or for claims of negligent or fraudulent misrepresentation and that no modifications of this Agreement shall be effective except those in writing and signed by both parties. FSI does not authorize and will not be bound by any representation of any nature other than those expressed in this Agreement. Franchisee further acknowledges and agrees that no representations have been made to it by FSI regarding projected sales volumes, market potential, revenues, profits of Franchisee's Restaurant, or operational assistance other than as stated in this Agreement or in any Franchise Disclosure Document provided by FSI or its representatives. Any policies that FSI adopts and implements from time to time are subject to change, are not a part of this Agreement, and are not binding on FSI. Nothing in this Agreement or in any related agreement is intended to disclaim any representations made by FSI in the Franchise Disclosure Document provided to Franchisee.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the franchise agreement represents the entire agreement between Fat Shack Inc. (FSI) and the franchisee, superseding any prior agreements related to the subject matter. Fat Shack will not be held liable or obligated for any oral representations or commitments made before the agreement's execution, including claims of negligent or fraudulent misrepresentation. Any modifications to the agreement must be in writing and signed by both parties to be effective.
Fat Shack does not authorize and will not be bound by any representation of any nature other than those expressed in the Franchise Agreement. Franchisees acknowledge that Fat Shack has made no representations regarding projected sales volumes, market potential, revenues, or profits of the franchisee's restaurant, or operational assistance, except as stated in the agreement or the Franchise Disclosure Document. Any policies that Fat Shack adopts and implements can change and are not part of the agreement, meaning they are not binding on Fat Shack.
However, the franchise agreement does not disclaim any representations made by Fat Shack in the Franchise Disclosure Document provided to the franchisee. This means that while oral or unsigned statements are generally not binding, Fat Shack remains responsible for the accuracy of information presented in the FDD itself. This is a standard clause in franchise agreements to prevent franchisees from relying on verbal promises not documented in the official documents.