Following termination or expiration of the agreement, must a Fat Shack franchisee cease operating any business at the Restaurant Location?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
- b.
Cease to identify itself as a FAT SHACK franchisee or use any Marks, trade secrets, signs, symbols, devices, trade names, or other materials of FSI.
- c.
Cease to identify the Restaurant Location as being, or having been, associated with FSI, and immediately cease operating any business at the Restaurant Location.
- d.
Cease using any proprietary mark of FSI or any mark in any way associated with the Marks and Licensed Methods and deliver to FSI all signs, sign-faces, advertising materials, forms and other materials bearing any of the Marks or otherwise identified with FSI.
- e.
Deliver to FSI the Operations Manual and all other information, documents and copies thereof which are proprietary to FSI.
- f.
Promptly take such action as may be required to cancel all fictitious or assumed names or equivalent registrations relating to its use of any Marks which are under the exclusive control of FSI or, at the option of FSI, assign the same to FSI.
- Notify the telephone company and all telephone directory publishers, domain name registration companies, and social media website operators, of the termination or expiration of Franchisee's right to use any telephone number, domain name, social media websites or accounts, and any regular, classified or other telephone directory listings associated with any Mark and complete all forms, and provide other necessary notification to authorize the transfer thereof to FSI or its designee.
Franchisee acknowledges that, as between Franchisee and FSI, FSI has the sole rights to and interest in all telephone, telecopy or facsimile machine numbers and directory listings, all domain names, and social media websites or accounts associated with any Mark.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, a franchisee must cease operating any business at the Restaurant Location. The franchisee must also stop identifying the location as being associated with Fat Shack.
In addition to ceasing operations at the Restaurant Location and refraining from associating the location with Fat Shack, the franchisee must also stop using any proprietary marks associated with Fat Shack. The franchisee is obligated to deliver to Fat Shack all signs, advertising materials, forms, and other materials bearing any of Fat Shack's marks. Furthermore, the franchisee must deliver the Operations Manual and all other proprietary information and documents to Fat Shack.
Finally, the franchisee is required to take action to cancel all fictitious or assumed names related to the use of any marks under Fat Shack's exclusive control or assign them to Fat Shack. The franchisee must also notify the telephone company, directory publishers, domain name registration companies, and social media website operators about the termination or expiration of their right to use any telephone number, domain name, social media websites, or accounts associated with any Fat Shack mark, and authorize the transfer of these to Fat Shack or its designee.