Does the Fat Shack Franchise Agreement allow Fat Shack to establish further standards for the relocation of a Fat Shack Restaurant?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
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, franchisees must obtain prior written approval from Fat Shack to relocate their restaurant. While Fat Shack generally approves relocations if the new location is within the franchisee's protected territory and meets the standards for initial restaurant locations, Fat Shack retains the right to establish further standards for relocation.
This means that even if a franchisee finds a new location within their protected territory that seems suitable, Fat Shack can impose additional requirements or criteria that the location must meet before approving the relocation. These additional standards are not defined in the FDD, giving Fat Shack considerable discretion in the relocation approval process.
For a prospective Fat Shack franchisee, this implies a degree of uncertainty when considering relocation. While the FDD outlines general conditions for approval, the possibility of further standards means that franchisees may face unexpected hurdles or costs during relocation. It would be prudent for potential franchisees to discuss with Fat Shack what these 'further standards' might entail and under what circumstances they would be applied, to better understand the potential challenges and costs associated with relocating a Fat Shack restaurant.