Does the Fat Shack Franchise Agreement include a Conditional Assignment of Lease as an attachment?

Yes, according to the 2025 Fat Shack Franchise Disclosure Document, a standard form of Conditional Assignment of Lease is included as Attachment D. This assignment serves as security for the franchisee's performance under the Franchise Agreement.

Fat Shack requires that the primary lease for the restaurant location contains specific provisions that protect the franchisor's interests. These provisions include ensuring that the lease term is at least seven years, the landlord consents to the use of Fat Shack's marks and signage, and Fat Shack has the right to enter the premises for modifications.

Furthermore, Fat Shack, or its designee, has the option to assume the franchisee's occupancy rights and assign or sublet the premises without the landlord's approval if the franchisee defaults on the lease or Franchise Agreement, or if either agreement is terminated. The landlord must also provide Fat Shack with notice of any default and an opportunity to cure it. The franchisee is responsible for obtaining the landlord's consent to this conditional assignment, ensuring that the lease aligns with Fat Shack's requirements.

This arrangement is typical in franchising, as it protects the franchisor's brand and investment in case the franchisee fails to meet their obligations. It also allows Fat Shack to maintain control over the location and ensure continued operation of a Fat Shack restaurant at that site, even if the original franchisee is no longer involved.