What is the definition of 'Franchise Agreement' in the context of a Fat Shack franchise?

According to Fat Shack's 2025 Franchise Disclosure Document, the Franchise Agreement is defined as the current form of the franchise agreement that Fat Shack uses when granting franchises to its franchisees. This agreement encompasses all ancillary documents that Fat Shack may require. Each Fat Shack Restaurant must be established and operated under a separate Franchise Agreement entered into between the parties.

For prospective franchisees, this means that the Franchise Agreement is the core legal document that outlines the rights and responsibilities of both the franchisee and Fat Shack. It governs how the restaurant is to be set up and run, ensuring compliance with Fat Shack's standards and methods. The agreement also covers the use of Fat Shack's trademarks and licensed methods.

Notably, if a franchisee is developing multiple Fat Shack Restaurants, each location requires its own separate Franchise Agreement. These subsequent agreements may have terms that differ from the initial agreement. However, Fat Shack agrees not to charge an Initial Franchise Fee greater than the amount set forth in Section 2.1. Franchisees should be aware that Fat Shack retains the right to modify the products, royalty percentages, advertising contributions, and other fees for subsequent agreements.