What is the deadline for a Fat Shack franchisee to recommence operations at a new Restaurant Location after a significant Condemnation or Casualty?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must immediately notify FSI of the occurrence of any (i) taking of any portion of the Restaurant Location by eminent domain, or (ii) any fire or other casualty damage to the Restaurant Location or Franchisee's FAT SHACK Restaurant (either, a "Condemnation or Casualty"). If, in FSI's business judgment, the Condemnation or Casualty is significant enough to render the continued operation of Franchisee's FAT SHACK Restaurant from the Restaurant Location in accordance with FSI's standards and specifications impractical, then Franchisee shall have 90 days from the date of the Condemnation or Casualty to (i) select a new location to serve as the Restaurant Location, (ii) obtain FSI's approval of the location and the lease or purchase agreement in accordance with Article 6, which shall require that Franchisee pay FSI Lease Review Fee if the number of leases and purchase agreements presented for FSI's review exceeds two, and (iii) recommence operations of Franchisee's FAT SHACK Restaurant at the new Restaurant Location. If Franchisee fails to recommence operations at an approved Restaurant Location during this 90-day period, FSI may terminate this Agreement upon written notice to Franchisee. If the Condemnation or Casualty, in FSI's business judgment, is not significant enough to render the continued operation of Franchisee's FAT SHACK Restaurant from the Restaurant Location in accordance with FSI's standards and specifications impractical, then Franchisee will use its best efforts to make all necessary repairs as soon as possible to make the Restaurant Location and Franchisee's FAT SHACK Restaurant conform to their condition, character and appearance immediately before such Condemnation or Casualty, according to the standards and specifications of FSI.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to the 2025 Fat Shack Franchise Disclosure Document, if a significant Condemnation or Casualty occurs that makes continued operation impractical in Fat Shack's business judgment, the franchisee has 90 days from the date of the event to take specific actions. These actions include selecting a new location, obtaining Fat Shack's approval for the location and lease or purchase agreement, and recommencing operations at the new location.
Specifically, the franchisee must select a new location to serve as the Restaurant Location, obtain Fat Shack's approval of the location and the lease or purchase agreement, and recommence operations of the Fat Shack Restaurant at the new Restaurant Location. If the franchisee presents more than two leases and purchase agreements for Fat Shack's review, they will be required to pay a Lease Review Fee.
Failure to recommence operations within this 90-day period can result in Fat Shack terminating the Franchise Agreement with written notice to the franchisee. This clause ensures that Fat Shack restaurants maintain consistent operation and brand presence, even in the face of unforeseen circumstances. This requirement is in place to ensure the Fat Shack brand maintains its presence and service to customers without prolonged interruption.