What document is signed when Fat Shack approves a restaurant location after the Target Area designation?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
If, as of the date you sign your Franchise Agreement, you do not have the Restaurant Location chosen and approved by us, we will designate, by Addendum to the Franchise Agreement, a "Target Area" within which to find a Restaurant Location. The designation of the Target Area does not in any manner grant you any continuing territorial rights in or to the Target Area. If the Addendum lists only a Target Area and not the Restaurant Location, then we and you will sign the Restaurant Location Supplement to Franchise Agreement attached as Exhibit II to the Franchise Agreement upon our later approval of the Restaurant Location.
Source: Item 12 — Territory (FDD pages 36–39)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, if a restaurant location is not chosen and approved by Fat Shack at the time the Franchise Agreement is signed, an addendum will designate a "Target Area" for finding a location. Once Fat Shack approves a specific restaurant location within the Target Area, both Fat Shack and the franchisee will sign the "Restaurant Location Supplement to Franchise Agreement," which is attached as Exhibit II to the Franchise Agreement.
This supplement formalizes the approval of the specific location and incorporates it into the existing Franchise Agreement. This process ensures that both parties agree on the chosen site and its suitability for a Fat Shack restaurant. The initial designation of a Target Area does not grant any territorial rights to the franchisee.
For a prospective Fat Shack franchisee, this means that the initial Franchise Agreement might not include a specific location. Instead, it might outline a general area where the franchisee is expected to find a suitable site. Only after Fat Shack approves the location is the agreement finalized with the Restaurant Location Supplement. Franchisees should carefully review Exhibit II to understand the terms and conditions related to the approved location.