Does the Fat Shack FDD receipt specify who the guarantor appeared before?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Please retain this copy for your records.
RECEIPT
This Disclosure Document summarizes certain provisions of the Franchise Agreement and other information in plain language. Read this Disclosure Document and all agreements carefully.
If Fat Shack Inc. ("Fat Shack") offers you a franchise, it must provide this Disclosure Document to you 14 calendar days before you sign a binding agreement with, or make a payment to, the franchisor, or an affiliate, in connection with the proposed franchise sale.
New York requires that Fat Shack give you this Disclosure Document at the earlier of the first personal meeting or 10 business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship.
Michigan requires that Fat Shack give you this Disclosure Document at least 10 business days before the execution of any binding franchise or other agreement or the payment of any consideration, whichever occurs first.
Iowa requires that Fat Shack give you this Disclosure Document at the earlier of the first personal meeting or 14 calendar days before the execution of the franchise or other agreement or the payment of any consideration, whichever occurs first.
If Fat Shack does not deliver this Disclosure Document on time or if it contains a false or misleading statement, or a material omission, a violation of federal law and state law may have occurred and should be reported to the Federal Trade Commission, Washington, DC 20580, and the appropriate state agency identified on Attachment M.
Fat Shack authorizes the parties identified on Attachment M to receive service of process for it in the particular state.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
The 2025 Fat Shack Franchise Disclosure Document (FDD) includes a receipt that confirms the franchisee received the FDD, but it does not specify before whom the guarantor must appear. The receipt verifies that Fat Shack provided the FDD within the mandated timeframes required by federal and state laws. These laws ensure prospective franchisees have adequate time to review the document before making any binding commitments or payments. The receipt also mentions that if the FDD contains false or misleading statements, or material omissions, it could be a violation of federal and state laws.
The FDD receipt serves as an acknowledgment that Fat Shack has met its legal obligations regarding disclosure. It also informs the franchisee of their rights and recourse in case of any discrepancies or misrepresentations in the document. Attachment M, referenced in the receipt, likely contains contact information for the appropriate state agency to report any violations.
While the FDD includes a Guaranty and Assumption of Franchisee's Obligations agreement, it does not specify that the guarantor must appear before a specific authority or individual when signing the guaranty. The guaranty ensures that the guarantor is personally bound by the obligations of the Development Agreement, including the franchisee's duty to pay and perform all covenants. The guarantor also waives certain rights, such as notice of acceptance and demand for payment.
Therefore, a prospective Fat Shack franchisee should consult with legal counsel to understand the full implications of the guaranty and assumption agreement. They should also inquire with Fat Shack about any specific requirements or procedures related to the execution of the guaranty, including whether notarization or witnessing is necessary and if there are specific individuals before whom the guarantor must appear.