What factors does Fat Shack base its approval of a proposed Restaurant Location on?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
You may operate your FAT SHACK Restaurant and use the Marks and the Licensed Methods only at the Restaurant Location that has been approved by us. You may not operate another FAT SHACK Restaurant at any site other than the Restaurant Location without first obtaining our written consent. We base our approval of your proposed Restaurant Location on a variety of factors including the viability of the location and demographics of the proposed Restaurant Location. See Item 11. 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.
You must obtain our prior written approval to relocate your Restaurant Location. We will generally approve the relocation of your FAT SHACK Restaurant if the new Restaurant Location is within your Protected Territory (described below) and meets our standards for your initial Restaurant Location, although we reserve the right to establish further standards.
Source: Item 12 — Territory (FDD pages 36–39)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the brand's approval of a proposed restaurant location hinges on several factors. These include the overall viability of the location itself and the specific demographics of the area where the restaurant will be situated. This suggests that Fat Shack carefully assesses potential locations to ensure they align with the brand's target market and have the potential for success.
For prospective franchisees, this means that the location selection process is not solely their responsibility. Fat Shack actively participates in evaluating potential sites, which can be beneficial as the franchisor brings experience and data to the decision-making process. However, it also implies that franchisees must be prepared to justify their location preferences to Fat Shack and potentially accept alternative locations if their initial choices do not meet the franchisor's criteria.
If a franchisee does not have a location chosen and approved when signing the Franchise Agreement, Fat Shack will designate a "Target Area" to search for a Restaurant Location. Once a location is approved, both parties will sign a Restaurant Location Supplement to the Franchise Agreement. Franchisees must also obtain written approval from Fat Shack to relocate their restaurant. While Fat Shack generally approves relocations within the Protected Territory that meet initial location standards, they reserve the right to establish further standards.