What is the condition for Fat Shack to generally approve the relocation of a Fat Shack Restaurant?

According to Fat Shack's 2025 Franchise Disclosure Document, a franchisee must obtain prior written approval from Fat Shack to relocate their restaurant. Generally, Fat Shack will approve a relocation if the new location is within the franchisee's protected territory and meets Fat Shack's standards for an initial restaurant location. However, Fat Shack retains the right to establish further standards for relocation approval. This means that even if a proposed new location is within the protected territory and meets the initial standards, Fat Shack can still deny the relocation based on other factors.

This policy has important implications for prospective Fat Shack franchisees. While the franchise agreement grants a protected territory, the ability to move within that territory is not guaranteed. Franchisees need to carefully consider the initial location and its long-term potential, as relocation may not be easily approved. The franchisee bears the risk that Fat Shack may impose additional, unspecified standards for relocation, creating uncertainty.

In the franchise industry, it is common for franchisors to have approval rights over relocation to maintain brand consistency and ensure the new location is viable. However, the lack of specific relocation standards beyond the initial location criteria gives Fat Shack significant discretion. A prospective franchisee should seek clarification from Fat Shack regarding what additional standards might be applied during the relocation approval process. Understanding these potential standards upfront can help a franchisee make informed decisions about site selection and future business planning.