What is the deadline for delivering a signed copy of the lease to Fat Shack after signing?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
We must approve any lease or, if applicable, any purchase agreement for your FAT SHACK Restaurant before you sign any of these agreements. We do not charge for up to two lease or purchase agreement reviews. If we are required to approve more than two leases or purchase agreements, we charge you a fee plus our out-of-pocket costs for our lost opportunity and legal and other expenses incurred for this additional review for each lease or purchase agreement after the first two. A signed copy of the lease must be delivered to us within 15 days after signing.
The primary lease must contain certain provisions granting us certain rights, as your franchisor, including:
- (i) The initial term of the lease, or the initial term together with any renewal terms (for which rent must be specified in the lease) must be for at least seven years;
- (ii) The lease must give the landlord's consent to your use of the Marks and signage which we initially prescribe for the FAT SHACK Restaurant;
- (iii) We must have the right to enter the premises to make any modification necessary to protect the Marks and the Licensed Methods;
- (iv) We or our designee, without the landlord's approval, must have the option to assume your occupancy rights under the existing lease terms and have the right to assign the lease or sublet the premises, for all or any part of the lease term, if you are in default under the lease or the Franchise Agreement or if the lease or Franchise Agreement is terminated;
- (v) Your landlord must agree to provide us with a notice of default and an opportunity to cure any default; and
- (vi) The lease must contain a use provision which is acceptable to us, including the requirement that only a FAT SHACK Restaurant may be operated on the premises without our prior written consent.
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, a signed copy of the lease must be delivered to Fat Shack within 15 days after signing. This requirement is part of Fat Shack's broader oversight of the restaurant location and lease agreement. Fat Shack must approve any lease before it is signed. If Fat Shack has to review more than two leases or purchase agreements, the franchisee will be charged a fee plus out-of-pocket costs.
This requirement ensures that Fat Shack can review the lease terms promptly and confirm they align with their standards. The lease must contain certain provisions that grant Fat Shack specific rights as the franchisor. These rights include ensuring the lease term is at least seven years, landlord consent for Fat Shack's marks and signage, the right for Fat Shack to enter the premises for modifications, the option for Fat Shack to assume occupancy rights, landlord notification of default, and acceptable use provisions.
For a prospective franchisee, this means that securing a suitable location and lease agreement that meets Fat Shack's approval is a critical early step. Franchisees should factor in the time needed for Fat Shack to review and approve the lease, as well as the 15-day deadline for submitting the signed copy. Failing to meet this deadline could potentially lead to delays in the franchise setup process or even a breach of the franchise agreement.
It is also important for franchisees to understand the implications of the conditional assignment of the lease to Fat Shack, which serves as security for the franchisee's obligations under the Franchise Agreement. Franchisees are responsible for obtaining the landlord's consent to this conditional assignment. Given these requirements, consulting with an attorney to review the lease agreement is highly recommended to ensure full compliance and understanding of all terms and conditions.