Is the current designated supplier of the Toast POS System for Fat Shack Restaurants affiliated with Fat Shack?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
You must purchase a designated POS System meeting our specifications. Each of our franchisees must also use operations and accounting software that have capabilities meeting our standards and specifications. The POS System operating software currently approved for use in the FAT SHACK Restaurants as of the date of this Disclosure Document is called the Toast POS System, available from our designated or approved supplier. It has been customized for our FAT SHACK Restaurants by our current designated supplier, a company not affiliated with us. You must purchase hardware and software maintenance and update services for the POS System from our designated or approved supplier and maintain them throughout the term of your Franchise Agreement. We may require you to use a new or different POS System and computer equipment in the future, in which case you must convert your POS System and computer equipment. We reserve the right to develop and license to you proprietary software for which we could derive revenue, although we have not developed any at this time.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 22–26)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, franchisees must purchase a designated POS System that meets Fat Shack's specifications. The currently approved POS System is the Toast POS System. The FDD specifies that the Toast POS System has been customized for Fat Shack Restaurants by their current designated supplier. Importantly, this supplier is explicitly stated to be a company not affiliated with Fat Shack.
This means that Fat Shack franchisees are required to use the Toast POS System, but the company providing the system is an independent entity. Franchisees must also purchase hardware and software maintenance and update services for the POS System from this designated supplier and maintain them throughout the term of their Franchise Agreement.
Fat Shack retains the right to require franchisees to use a new or different POS System and computer equipment in the future, which would necessitate a conversion of the POS System and computer equipment. Fat Shack also reserves the right to develop and license proprietary software, potentially generating revenue, although no such software has been developed as of the date of the FDD.