What document regarding ownership must a Fat Shack franchisee represent as true, complete, accurate, and not misleading?

According to Fat Shack's 2025 Franchise Disclosure Document, a franchisee must represent that the Statement of Ownership, attached as Exhibit IV to the FDD, is true, complete, accurate, and not misleading. This representation is a legally binding assertion by the franchisee regarding the accuracy of the ownership information provided to Fat Shack.

This requirement ensures that Fat Shack has correct and up-to-date information about who owns and controls each franchise location. This is crucial for maintaining brand standards, ensuring compliance with the franchise agreement, and managing potential conflicts of interest. The franchisee must promptly notify Fat Shack in writing if any information in the Statement of Ownership changes during the term of the Franchise Agreement and comply with the transfer provisions outlined in Article 17.

For a prospective Fat Shack franchisee, this means carefully completing the Statement of Ownership and verifying its accuracy before submitting it to Fat Shack. Any changes in ownership must be promptly reported to Fat Shack to avoid potential breaches of the franchise agreement. Failure to provide accurate information or to update it as needed could have legal and financial consequences, including potential termination of the franchise agreement.