What is Exhibit II to the Fat Shack Franchise Agreement?
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, Exhibit II to the Franchise Agreement is the Restaurant Location Supplement to the Franchise Agreement. This supplement is signed by both Fat Shack and the franchisee upon the franchisor's approval of the restaurant location. This process occurs if a specific restaurant location has not been chosen and approved by Fat Shack at the time the Franchise Agreement is initially signed. In such cases, an addendum designating a "Target Area" is included with the Franchise Agreement, within which the franchisee is expected to find a suitable location.
It is important to note that the designation of a Target Area does not grant the franchisee any territorial rights. The Restaurant Location Supplement formalizes the agreement on the specific location once it has been approved by Fat Shack. This ensures that both parties are in agreement regarding the site where the Fat Shack restaurant will operate.
Prospective franchisees should pay close attention to the criteria Fat Shack uses for location approval, as outlined in Item 11 of the FDD. Understanding these criteria will help franchisees identify and propose locations that are more likely to be approved, thus expediting the process of finalizing the Restaurant Location Supplement and moving forward with the establishment of their Fat Shack restaurant.