What certification is required for documents provided for Fat Shack's inspection or audit?

According to Fat Shack's 2025 Franchise Disclosure Document, all documents provided for inspection or audit must be certified as true, complete, and correct by both the franchisee and any affiliated party, if applicable. This requirement ensures the accuracy and reliability of the financial and operational information that Fat Shack uses to assess the franchisee's compliance with the franchise agreement.

This certification requirement has significant implications for prospective Fat Shack franchisees. It means that franchisees are personally responsible for the accuracy of all documents submitted for audit, including financial statements, sales reports, and other records. Any errors or omissions, whether intentional or unintentional, could lead to penalties or other consequences. Franchisees should therefore implement robust internal controls and procedures to ensure the accuracy of their records.

Furthermore, if an audit reveals that the franchisee has understated gross sales by 2 percent or more, the franchisee will be responsible for covering all reasonable costs and expenses incurred by Fat Shack during the inspection or audit. These costs can include fees for independent accountants, as well as travel, living, and compensation expenses for Fat Shack's employees or agents involved in the audit. This provision creates a strong incentive for franchisees to maintain accurate records and report sales honestly.

In addition to the franchisee's certification, any affiliated parties involved in the business, such as a general manager or managing owner, may also be required to certify the documents. This requirement extends the responsibility for accuracy beyond the franchisee and ensures that all relevant parties are accountable for the information provided to Fat Shack. Franchisees should carefully consider these certification requirements and ensure that all parties involved in their business are aware of their responsibilities.