Besides the Nondisclosure and Noncompetition Agreement, what other agreements does Fat Shack require between the franchisee and its employees?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
We require each of your officers, directors, shareholders, partners, or members and each of their respective spouses to sign an agreement (Exhibit V to the Franchise Agreement) personally assuming and agreeing to perform all obligations of the franchisee and to be bound by the terms of the Franchise Agreement, whichever is applicable.
ITEM 16
RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL
You will sell only those products and services approved by us and you will not use your FAT SHACK Restaurant or the Restaurant Location for any purposes other than the operation of a FAT SHACK Restaurant.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 41–42)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, in addition to the Nondisclosure and Noncompetition Agreement, Fat Shack requires each of the franchisee's officers, directors, shareholders, partners, or members, and each of their respective spouses to sign an agreement. This agreement (Exhibit V to the Franchise Agreement) stipulates that these individuals personally assume and agree to perform all obligations of the franchisee and to be bound by the terms of the Franchise Agreement, whichever is applicable.
This requirement ensures that the key individuals associated with the franchisee entity are personally liable for upholding the commitments outlined in the Franchise Agreement. This provides Fat Shack with an additional layer of security and recourse, as it can pursue these individuals directly if the franchisee fails to meet its obligations.
Beyond this agreement, Fat Shack explicitly states that it makes no other recommendations and has no other requirements regarding employment or other written agreements between the franchisee and its employees. This suggests that franchisees have considerable autonomy in structuring their employment agreements, provided they comply with all applicable laws and regulations. However, franchisees must ensure that any employee with access to the Operations Manual executes Fat Shack's standard Nondisclosure and Noncompetition Agreement.