What is the dependency for Fat Shack to grant a geographic area around a Fat Shack Restaurant?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to the paragraph below regarding Captive Audience Venues and Special Venues and Channels noted below, you will be granted a geographic area around your Restaurant Location (the "Protected Territory") in which we will not operate, nor permit a third party to operate, a FAT SHACK Restaurant as long as you are in substantial compliance with all the provisions of the Franchise Agreement. The Protected Territory is an area encompassing a three mile radius around the FAT SHACK Restaurant as measured from the front door of the Restaurant. A FAT SHACK Restaurant at a Captive Audience Venue does not have a Protected Territory.
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
We reserve the right, regardless of location, including a location within your Protected Territory, for us and our affiliates to market, offer, and sell, and to authorize third parties to market, offer, and sell, any and all products and services (i) through venues and channels of distribution other than franchised
and company-owned FAT SHACK Restaurants, including but not limited to grocery stores, wholesale distributors, coffee shops, restaurants that are not FAT SHACK Restaurants, offices, hospitality and food service venues, or through retail store display, catalog sales, Internet and other electronic methods, and catering (collectively, "Special Venues and Channels") and (ii) in FAT SHACK Restaurants located in captive audience venues (collectively, "Captive Audience Venue"). Examples of Captive Audience Venue locations include airports and other transportation hubs, hospitals, convention centers, grocery stores, department stores, "big box" retail centers, resorts, sports arenas and stadiums, hotels and office buildings, military installations (Army and Air Force Exchange Services), and food courts. The products and services available through Special Venues and Channels and in a FAT SHACK Restaurant located in a Captive Audience Venue may include those that are the same as or similar to those which you will offer and sell, such as our branded and exclusive "FAT sandwiches," or entirely different services and products. Special Venues and Channels and Captive Audience Venues may be in any location, including in close proximity to your Restaurant Location or Protected Territory, and will be without any compensation to you. The marketing, offer, and sale of products and services through Special Venues and Channels or the Captive Audience Venues may be under the Marks and Licensed Methods or different trademarks, service marks, and methods.
Source: Item 12 — Territory (FDD pages 36–39)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, a franchisee will be granted a geographic area around their Restaurant Location (the "Protected Territory") in which Fat Shack will not operate, nor permit a third party to operate, a Fat Shack Restaurant as long as the franchisee is in substantial compliance with all the provisions of the Franchise Agreement. The Protected Territory is an area encompassing a three mile radius around the Fat Shack Restaurant as measured from the front door of the Restaurant. A Fat Shack Restaurant at a Captive Audience Venue does not have a Protected Territory.
It is important to note that franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that Fat Shack owns, or from other channels of distribution or competitive brands that Fat Shack controls. Fat Shack reserves the right, regardless of location, including a location within a franchisee's Protected Territory, for it and its affiliates to market, offer, and sell, and to authorize third parties to market, offer, and sell, any and all products and services through venues and channels of distribution other than franchised and company-owned Fat Shack Restaurants, including but not limited to grocery stores, wholesale distributors, coffee shops, restaurants that are not Fat Shack Restaurants, offices, hospitality and food service venues, or through retail store display, catalog sales, Internet and other electronic methods, and catering (collectively, "Special Venues and Channels") and in Fat Shack Restaurants located in captive audience venues (collectively, "Captive Audience Venue").
Examples of Captive Audience Venue locations include airports and other transportation hubs, hospitals, convention centers, grocery stores, department stores, "big box" retail centers, resorts, sports arenas and stadiums, hotels and office buildings, military installations (Army and Air Force Exchange Services), and food courts. The products and services available through Special Venues and Channels and in a Fat Shack Restaurant located in a Captive Audience Venue may include those that are the same as or similar to those which franchisees will offer and sell, such as Fat Shack's branded and exclusive "FAT sandwiches," or entirely different services and products. Special Venues and Channels and Captive Audience Venues may be in any location, including in close proximity to a franchisee's Restaurant Location or Protected Territory, and will be without any compensation to the franchisee. The marketing, offer, and sale of products and services through Special Venues and Channels or the Captive Audience Venues may be under the Marks and Licensed Methods or different trademarks, service marks, and methods.