What is the deadline for a Fat Shack franchisee to advise FSI of a bank account change?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee revokes or cancels the Authorization Agreement executed by Franchisee and provided to FSI pursuant to Section 5.4, or takes other steps to prevent FSI from obtaining payment of any amounts due under this Agreement, or otherwise, by electronic funds transfer of funds from Franchisee's bank account to FSI's bank account, and fails to provide a valid replacement Authorization Agreement within five days after receiving notice of such matter.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to the 2025 Fat Shack FDD, a franchisee must provide a valid replacement Authorization Agreement within five days after receiving notice if they revoke or cancel the original agreement, or take steps to prevent Fat Shack from obtaining payment via electronic funds transfer. This agreement allows Fat Shack to transfer funds from the franchisee's bank account to Fat Shack's bank account.
This requirement ensures that Fat Shack can continue to receive payments owed by the franchisee without interruption. The franchisee must act quickly to provide the replacement agreement to avoid being in breach of the franchise agreement.
It is important for a prospective Fat Shack franchisee to understand the implications of this requirement. Failing to provide a valid replacement Authorization Agreement within the specified timeframe could lead to further action from Fat Shack, potentially including termination of the franchise agreement.