What must a Fat Shack franchisee do to ascertain whether the Restaurant Location and lease or purchase agreement are acceptable?

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Franchisee may only operate a FAT SHACK Restaurant at a site approved by FSI, which approval will not be unreasonably withheld so long as the site meets FSI's site selection criteria. Franchisee shall follow FSI's site selection procedures in locating a Restaurant Location for the FAT SHACK Restaurant. Franchisee shall submit a completed site submittal package, including demographics and other materials requested by FSI, containing all information required by FSI to assess a proposed Restaurant Location. Franchisee acknowledges and warrants that (1) FSI's approval does not constitute a guarantee, recommendation or endorsement of the Restaurant Location or Target Area and that the success of the FAT SHACK Restaurant to be operated at a Restaurant Location is dependent upon Franchisee's abilities as an independent businessperson; and, (2) when a Restaurant Location is approved by FSI, then FSI has complied with its obligations under the Agreement to assist Franchisee by provision of criteria for the Restaurant Location and determining fulfillment of the requisite criteria for the Restaurant Location, such determination based on information provided by Franchisee.

6.2. Lease Approval and Architectural Drawings

Once the Restaurant Location has been approved by FSI, Franchisee's proposed Restaurant Location lease or purchase agreement must be reviewed and certified acceptable by FSI. After FSI has approved the proposed lease or purchase agreement, FSI and Franchisee will mutually develop the layout of the Restaurant Location, or Franchisee may employ the services of an architecture to create a set of architectural drawings for the Restaurant Location, which will be subject to FSI's approval. Franchisee may not sign a lease or use architectural drawings that have not been approved by FSI. FSI's approval of a lease and architectural drawings indicates only that the lease and drawings meet FSI's minimum criteria for the operation of a FAT SHACK Restaurant and that the interests of FSI and its affiliates are protected. FSI and any legal counsel, architectural advisors, or other professional advisors reviewing the lease or purchase agreement and providing or reviewing the architectural drawings will be acting only behalf of FSI. Franchisee acknowledges that FSI's review of the lease or purchase agreement and delivery of architectural drawings does not constitute: (i) a guaranty of the Restaurant Location's suitability for a FAT SHACK Restaurant; (ii) a guaranty that the FAT SHACK business established at the Restaurant Location will be successful; (iii) any assurance that the business terms of the lease or purchase agreement, including the rent or purchase price, are the most favorable terms available in the market surrounding the Restaurant Location; (iv) any representation that the lease or purchase agreement is entirely consistent with the terms of any signed letter of intent;

Source: Item 23 — Receipts (FDD pages 53–223)