What is the deadline for a Fat Shack franchisee to notify Fat Shack if they change their bank account?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Before you open your FAT SHACK Restaurant, you must sign and deliver to us and your bank all documents needed to permit us to debit your bank account for each week's Royalty and Marketing and Promotion Fees and other payments due under the Franchise Agreement or otherwise. If you change your account or transfer your account to a different bank, you must notify us within one day, and sign and deliver to us and your bank new documents to permit us to debit your bank account within three days. However, we may require you to pay all amounts due by means other than automatic debit whenever we deem appropriate.
Source: Item 6 — Other Fees (FDD pages 15–18)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, a franchisee must notify Fat Shack within one day if they change their bank account. This is crucial because Fat Shack uses automated debits to collect weekly Royalty and Marketing and Promotion Fees.
In addition to notifying Fat Shack within one day, the franchisee must also sign and deliver new documents to both Fat Shack and their bank within three days to permit Fat Shack to continue debiting the account. This ensures that Fat Shack can continue to collect fees without interruption.
Failure to comply with these notification deadlines could result in Fat Shack requiring the franchisee to pay all amounts due by means other than automatic debit. This could create additional administrative burdens and potentially increase the risk of late payments, which could incur interest and late filing charges as outlined in Item 6.