What must a Fat Shack franchisee do if they want to purchase items from a supplier not previously approved?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
If you want to purchase or lease any inventory items, products, equipment, supplies, or services we have not approved or through a supplier who we have not previously approved, you must notify us in writing and obtain our approval in advance. The notification should include sufficient specifications, photographs, drawings and other information and samples to determine whether those items or those suppliers meet our specifications. You must reimburse us for the actual cost of any testing and the reasonable cost of investigation to determine whether those items or suppliers meet our specifications. We will advise you within 30 days after we receive all required information and complete any inspection or investigation whether the items or suppliers meet our specifications. We may, in our sole discretion, for any reason whatsoever, elect to withhold approval of the items or suppliers. We reserve the right to change the published standards regarding any approved supplier or any products, equipment, supplies, or services used, offered for sale or leased by franchisees on 30 days written notice to all franchisees and all approved suppliers. We may revoke our approval of any products, equipment, supplies, services, or suppliers previously approved by written notice to the supplier and each franchisee using that supplier.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 22–26)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, if a franchisee wishes to purchase inventory items, products, equipment, supplies, or services from a supplier not already approved by Fat Shack, they must first seek written approval from Fat Shack. This process begins with the franchisee notifying Fat Shack in writing of their intent to use the unapproved supplier.
The notification to Fat Shack must include comprehensive details about the items or the supplier in question. Specifically, the franchisee must provide sufficient specifications, photographs, drawings, and other relevant information and samples. This allows Fat Shack to adequately assess whether the items or the supplier meet the company's standards and specifications. The franchisee is also responsible for covering the costs associated with this evaluation, including the actual cost of any testing and the reasonable cost of investigation incurred by Fat Shack to determine compliance.
Fat Shack commits to advising the franchisee of their decision within 30 days after receiving all the necessary information and completing their inspection or investigation. However, Fat Shack retains the sole discretion to withhold approval for any reason. Furthermore, Fat Shack reserves the right to modify the standards for approved suppliers or any products, equipment, supplies, or services with 30 days' written notice to all franchisees and approved suppliers. Fat Shack can also revoke approval of any previously approved items or suppliers by providing written notice to the supplier and each franchisee using that supplier.
This requirement ensures that all products and services used within the Fat Shack franchise system meet the franchisor's standards, maintaining consistency and protecting the brand's reputation. Prospective franchisees should be aware of these restrictions and the potential costs and delays associated with seeking approval for new suppliers.