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Where can I find the form of the Nondisclosure and Noncompetition Agreement mentioned in the Fat Shack FDD?

Fat_Shack Franchise · 2025 FDD

Answer from 2025 FDD Document

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ATTACHMENT C (TO DISCLOSURE DOCUMENT)

NONDISCLOSURE AND NONCOMPETITION AGREEMENT

NONDISCLOSURE AND NONCOMPETITION AGREEMENT

This Nondisclosure and Noncompetition Agreement (this "Agreement") is made and entered into effective as of the date set forth on the signature page hereof, by and among FAT SHACK INC., a Delaware corporation ("FSI") located at 420 East 58th Avenue, Suite 128B, Denver, Colorado 80216, the undersigned franchisee ("Company"), and the undersigned associate of Company ("Associate").

RECITALS

  • A. FSI is engaged in the business of establishing, operating, franchising, and promoting specialty quick service sandwich restaurants under the name Fat Shack® that features "Fat Sandwiches," burgers and wings, together with appetizers, desserts, hot and cold beverages, and related merchandise, for dine in, takeout and delivery, and specializes in late night delivery of its products to its customers ("FAT SHACK Restaurants") associated with the service mark "FAT SHACK" and other logos, trademarks, service marks and commercial symbols and the Franchisor's proprietary methods of doing business ("Licensed Methods").
  • B. FSI and its affiliates have developed proprietary methods for establishing, operating and promoting FAT SHACK Restaurants utilizing certain confidential information as more fully described herein, and have established substantial goodwill and an excellent reputation with respect to the quality of the products and services available in a FAT SHACK Restaurant, which goodwill and reputation have been and will continue to be of major benefit to FSI.
  • C. Company is a franchisee under an effective franchise agreement, development agreement, or both, with FSI (as applicable, the "Franchise Agreement").
  • D. Associate is or will become involved with Company in the capacity of an officer, partner, director, manager, agent, employee, member, Managing Owner, Designated Manager (as defined in the Franchise Agreement), beneficial owner, or independent contractor (such capacities collectively referred to as "Affiliation") or is related to a person who has an Affiliation with Company, and will become privileged as to certain confidential information related to FSI, its operations, the FAT SHACK Restaurants and/or the Licensed Methods.
  • E. FSI and Company require that Associate enter into this Agreement with them before Associate shall be allowed to have access to any confidential information of FSI (i) as a material term of the Franchise Agreement; (ii) in order to protect FSI's confidential know-how and distinctive systems, designs, décor, trade dress, specifications, standards, procedures and other trade secrets authorized or required by FSI for use in the operation of Company's FAT SHACK Restaurant; (iii) in order to protect FSI's proprietary rights in, and Company's right to use, the confidential information of FSI;

Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 41–42)

What This Means (2025 FDD)

According to the 2025 Fat Shack Franchise Disclosure Document, the form of the Nondisclosure and Noncompetition Agreement can be found in Attachment C of the disclosure document. Fat Shack requires franchisees, their general managers, and other employees who have access to the Operations Manual to sign this agreement. Franchisees must then send a copy of the signed agreements to Fat Shack.

The Nondisclosure and Noncompetition Agreement is made between Fat Shack Inc., the franchisee (referred to as "Company"), and the franchisee's associate. The agreement acknowledges that Fat Shack has developed proprietary methods for operating Fat Shack Restaurants and uses confidential information. The franchisee acknowledges they are a franchisee under an existing agreement with Fat Shack.

Additionally, the FDD includes Riders to the Nondisclosure and Noncompetition Agreement for Specific States and Provinces. If any of these riders are marked as "Applicable Rider", they are incorporated into the agreement and supersede any conflicting terms in the main agreement. This ensures that the non-disclosure and non-compete terms comply with local laws and regulations where the Fat Shack franchise is located.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.