Can Fat Shack delegate its obligations and duties under the franchise agreement to third parties?

According to the 2025 Fat Shack Franchise Disclosure Document, Fat Shack has the right to delegate its obligations. Section 24.3 of Item 23 states that Fat Shack may assign its rights and delegate its duties under the agreement to a subsidiary or affiliate, or in connection with a sale, merger, or reorganization of Fat Shack.

This means that a prospective Fat Shack franchisee could potentially be dealing with a different entity than the original franchisor at some point during the franchise term. This is a fairly standard practice in franchising, as it allows the franchisor flexibility in managing and growing the brand.

However, it's important for the franchisee to understand that the terms of the franchise agreement remain in effect even if the agreement is assigned to a new entity. The franchisee's obligations and rights would not change simply because Fat Shack has delegated its duties. It is important to note that this clause protects Fat Shack and provides them with options for the future, but does not allow the franchisee the same flexibility.