What is the deadline for the Assignor to exercise options to extend or renew the Fat Shack lease?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Throughout the term of the Lease, Assignor agrees that it shall elect and exercise all options to extend the term of or renew the Lease not less than 30 days prior to the last day said option must be exercised, unless Assignee otherwise agrees in writing.
Upon Assignee's failure otherwise to agree in writing, and upon the failure of Assignor to elect to extend or renew the Lease, Assignor hereby appoints Assignee as its true and lawful attorney-in-fact to exercise such extension or renewal option in the name, place and stead of Assignor for the sole purpose of effecting such extension or renewal.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the Assignor, which in this case is the franchisee, must elect and exercise all options to extend or renew the lease not less than 30 days prior to the last day said option must be exercised. This requirement is in place unless the Assignee, which is Fat Shack, otherwise agrees in writing to a different deadline.
If the franchisee fails to extend or renew the lease and Fat Shack does not provide written consent to a different arrangement, the franchisee appoints Fat Shack as their attorney-in-fact. This appointment allows Fat Shack to exercise the extension or renewal option on behalf of the franchisee. This ensures the lease remains active and the Fat Shack restaurant can continue operating at its location.
This provision protects Fat Shack's interests by ensuring the restaurant location remains secured, as the location is critical to the ongoing operation and success of the franchise. By setting a clear deadline and granting themselves the power to act on the franchisee's behalf, Fat Shack minimizes the risk of lease expiration and potential disruption to the business.