In the Fat Shack certificate, who must appear in person before the guarantor?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee is a corporation, partnership, limited liability company or other business entity, the following additional conditions must be met, along with any other conditions as may be established by FSI for entity franchisees:
- a. Contemporaneously with the business entity acquiring the franchise rights, thereafter upon the issuance or transfer of any ownership interests in the business entity or the appointment or election of any person as director, officer, member or manager of the business entity, and at any other time requested by FSI, the shareholders, members, partners, other owners, directors, officers, managers (as applicable), and any other individuals as designated by FSI will execute the Guaranty and Assumption of Franchisee's Obligations attached hereto as Exhibit V and incorporated herein by reference, personally guaranteeing full payment and performance of Franchisee's obligations to FSI and individually undertaking to be bound, jointly and severally, by all the terms of this Agreement.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
The 2025 Fat Shack Franchise Disclosure Document outlines requirements for entity franchisees, but it does not specify who must appear in person before a guarantor. However, it does state that if a franchisee is a corporation, partnership, limited liability company, or other business entity, certain individuals must execute a Guaranty and Assumption of Franchisee's Obligations. These individuals include shareholders, members, partners, other owners, directors, officers, managers, and any other individuals designated by Fat Shack Inc. (FSI). These individuals personally guarantee the franchisee's obligations to FSI.
The document also states that these individuals must execute the Guaranty and Assumption of Franchisee's Obligations contemporaneously with the business entity acquiring the franchise rights. This requirement also applies upon the issuance or transfer of any ownership interests in the business entity, the appointment or election of any person as director, officer, member, or manager of the business entity, and at any other time requested by FSI.
While the FDD specifies who must sign the guaranty, it does not explicitly state that these individuals must appear in person before a guarantor. A prospective franchisee should clarify with Fat Shack whether in-person appearance before a guarantor is required, or if alternative methods of verification are acceptable.