Besides the initial Fat Shack Restaurant, what is the minimum number of additional Fat Shack Restaurants a franchisee must develop according to the Development Agreement?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
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|---|---|---|---|
| 2. referenced in Section 1.1 | The number of FAT SHACK Restaurants to be developed in the Protected Area of the Development Agreement (including the FAT SHACK Restaurant under the Initial Franchise Agreement) shall be: | ||
| 3. | The Development Fee to be paid by Franchisee to FSI pursuant to Section 2.1 of the Development Agreement shall be $ | ||
| 4. | The Development Schedule, as referred to in Section 3.1 of the Development Agreement | ||
| is: | |||
| FAT SHACK Restaurant Number | Date by Which Franchise Agreement Must be Signed and Must be Submitted to FSI | Date by Which the FAT SHACK Restaurant Must be Opened | Cumulative Number of FAT SHACK Restaurants Required to be Opened and Continuously Operated by Franchisee as of the Date in Preceding Column |
| -------------------------------------- | ------------------------------------------------------------------------------------------- | ---------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------ |
| 1 | Date of this Development Agreeme |
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the specific number of additional Fat Shack restaurants a franchisee must develop is determined by the Development Schedule outlined in the Addendum to the Development Agreement. The Development Schedule dictates the timeline for opening Fat Shack restaurants within the franchisee's protected area.
The franchisee is obligated to adhere strictly to this schedule. For each Fat Shack restaurant, the franchisee must enter into a Franchise Agreement with Fat Shack by the date specified in the Development Schedule. Furthermore, the franchisee must continuously operate at least the number of Fat Shack restaurants as stipulated in the Development Schedule.
The table provides a structure for understanding the development schedule. It includes columns for the Fat Shack Restaurant Number, the date by which the Franchise Agreement must be signed, the date by which the Fat Shack Restaurant must be opened, and the cumulative number of Fat Shack Restaurants required to be opened and continuously operated. The table shows that after the first restaurant, identified as '1', at least two more restaurants are planned ('2' and '3'), but the specific dates for signing the franchise agreement and opening the restaurants are not provided in this excerpt.