In case of conflict, which agreement controls between the Fat Shack Development Agreement and any franchise agreement?

According to Fat Shack's 2025 Franchise Disclosure Document, the terms of the Development Agreement will control in the event of any conflict with the terms of any franchise agreement executed under it. This means that if there are discrepancies or contradictions between the two agreements, the Development Agreement takes precedence.

For a prospective Fat Shack franchisee, this is significant because the Development Agreement outlines the overall rights and obligations related to developing multiple franchise locations. This agreement sets the stage for the relationship between the franchisee and Fat Shack regarding expansion plans. The individual franchise agreements then govern the operation of each specific Fat Shack restaurant.

Therefore, understanding the Development Agreement is crucial, as its terms will override any conflicting terms in subsequent franchise agreements. Franchisees should pay close attention to the Development Agreement to fully understand their development obligations, timelines, and any specific conditions that might affect their ability to open and operate multiple Fat Shack locations.