What factors does Fat Shack consider when approving a proposed restaurant location?
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 location's viability and the demographics of the proposed restaurant location. This means Fat Shack assesses whether the area can support a successful restaurant and whether the local population aligns with their target customer base. Item 11 of the FDD likely contains more details on these factors.
If a franchisee has not yet secured a location when signing the Franchise Agreement, Fat Shack will designate a "Target Area" for the franchisee to search for a suitable site. However, this designation does not grant any territorial rights within that area. Once a location is found within the Target Area, both the franchisee and Fat Shack must sign a Restaurant Location Supplement to the Franchise Agreement to finalize the approval.
Relocating an existing Fat Shack restaurant requires prior written approval from the franchisor. Generally, Fat Shack will approve a relocation if the new site is within the franchisee's Protected Territory and meets the standards for an initial restaurant location. However, Fat Shack retains the right to establish additional standards for relocation. This ensures that any move maintains the brand's quality and market position.