What factors does Fat Shack consider when approving or disapproving a proposed Fat Shack Restaurant location?

According to Fat Shack's 2025 Franchise Disclosure Document, the company considers several factors when approving or disapproving a proposed restaurant location. These factors include the nature and location of other competitive Fat Shack restaurants, the location of potential customers, population density, proximity to college campuses, traffic patterns, and any other factors Fat Shack deems relevant on a case-by-case basis.

Fat Shack does not generally own the premises that franchisees lease for their Fat Shack Restaurants; instead, the property is typically leased from a third party. If Fat Shack approves the location, they may assist in negotiating the lease or purchase agreement to ensure it meets their minimum requirements, although they are not obligated to do so. If Fat Shack does not approve a site, the franchisee must propose a new site. The franchisee must not enter into any contract or letter of intent to purchase or lease the premises without Fat Shack's prior written approval.

There is no contractual limit on the time it takes Fat Shack to approve or disapprove a proposed site and lease. However, once Fat Shack has all the necessary documentation for review, they typically take 30 days to approve or disapprove a proposed restaurant location and lease. Fat Shack usually submits initial lease review comments within one to two weeks after receiving the lease, but the entire lease negotiation process typically takes anywhere from two weeks to two months, depending on the landlord's responsiveness.

The review and approval of the lease or purchase agreement is conducted solely to determine that it meets Fat Shack's minimum criteria for the operation of a Fat Shack Restaurant and that the interests of Fat Shack and its affiliates are protected. Fat Shack recommends that franchisees have their own attorney review the lease on their behalf.