In the context of arbitration with Fat Shack, who is considered an acceptable party to be joined?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
ompany is located.
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- Arbitration. Any and all controversies, disputes or claims between FSI, its subsidiaries and affiliated companies or their shareholders, members, managers, officers, directors, agents, employees and attorneys (in their representative capacity); Company, its shareholders, members, managers, officers,
directors, agents and employees; and/or Associate arising out of or related to this Agreement or the validity hereof shall be submitted for binding arbitration; except for actions for injunctive relief pursuant to Section 7, which actions FSI and/or Company at their option may bring either in a court of competent jurisdiction or in arbitration. If FSI is a party to any controversy, dispute or claim, such arbitration proceedings shall be conducted in Denver, Colorado, will be submitted to the Judicial Arbiter Group, will be heard by one arbitrator in accordance with the then current rules of the American Arbitration Association ("AAA") applicable to commercial arbitration, and the arbitrator shall be a resident of the State of Colorado knowledgeable of Colorado law and fluent in English. The arbitration proceeding and all other hearings shall be conducted in English only, although Associate shall have the right, at Associate's option and sole expense, to have a translator present at the proceeding or other hearings. If FSI is not a party to such controversy, dispute or claim, such arbitration proceedings shall be conducted within the area in which Company's FAT SHACK Restaurant is based and will be heard by one arbitrator in accordance with the then current commercial arbitration rules of any arbitration group mutually acceptable to Company and Associate, and if Company and Associate cannot agree on an arbitration group within 30 days after demand for arbitration, then the AAA shall conduct such arbitration in accordance with its then current commercial arbitration rules. All jurisdictional issues will be decided by the arbitrator.
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- Attorneys' Fees.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, any controversies, disputes, or claims can be submitted for binding arbitration. Acceptable parties to be joined include Fat Shack Industries (FSI), its subsidiaries and affiliated companies, or their shareholders, members, managers, officers, directors, agents, employees, and attorneys (in their representative capacity). The franchisee (referred to as Company in this section), its shareholders, members, managers, officers, directors, agents, and employees are also acceptable parties. Additionally, any Associate arising out of or related to the Franchise Agreement or its validity can be included in the arbitration.
For a prospective Fat Shack franchisee, this means that if a dispute arises, the franchisee can be compelled to enter into binding arbitration with Fat Shack and the entities and individuals associated with them. This clause covers a broad range of individuals and entities affiliated with Fat Shack, which could include parent companies, sister brands, or individual employees. The franchisee should be aware that they may face arbitration not only with Fat Shack itself but also with these related parties.
It is important to note that actions for injunctive relief are an exception to this arbitration requirement. Fat Shack and/or the franchisee can choose to bring these actions in a court of competent jurisdiction or in arbitration. If Fat Shack is a party to the dispute, the arbitration proceedings will be conducted in Denver, Colorado, submitted to the Judicial Arbiter Group, and heard by one arbitrator knowledgeable of Colorado law and fluent in English. If Fat Shack is not a party, the arbitration will be conducted within the area where the franchisee's Fat Shack restaurant is based, using an arbitration group mutually agreed upon by the franchisee and Fat Shack.