What must a Fat Shack franchisee certify about the documents provided for FSI's inspection or audit?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
All documents provided for FSI's inspection or audit must be certified by Franchisee and the appropriate affiliated party, if applicable, as true, complete and correct.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, any documents provided for inspection or audit by FSI (Fat Shack Inc.) must be certified by both the franchisee and any affiliated parties, if applicable. This certification confirms that the documents are true, complete, and correct.
This requirement ensures that Fat Shack receives accurate and reliable information during audits. The documents subject to this certification can include tax returns, financial statements, bank statements, copies of checks, contracts, and any other records FSI deems relevant to assess the franchisee's business operations and verify fee payments.
Failure to provide certified accurate documents can lead to serious repercussions. If an audit reveals a deficiency in payments owed to Fat Shack, those amounts become immediately payable with interest and late fees. Furthermore, if the audit uncovers that the franchisee understated gross sales by 2 percent or more, the franchisee is responsible for covering all costs and expenses associated with the audit, including accounting fees and travel expenses incurred by Fat Shack's employees or agents.