Does a Fat Shack franchisee need to maintain a sufficient supply of all menu items?

According to Fat Shack's 2025 Franchise Disclosure Document, franchisees must maintain a sufficient supply of all menu items. Specifically, the franchisee is required to maintain a sufficient supply of all menu items and related food and paper products to ensure that these items are available to customers at all times, as far as possible. This requirement is part of the franchisee's broader obligations to operate the Fat Shack restaurant in accordance with the standards set by Fat Shack.

Furthermore, prior to opening, the franchisee must purchase and stock the restaurant with inventory in quantities and mixes as determined and prescribed by Fat Shack. During the term of the agreement, the franchisee must maintain product inventory levels and mixes sufficient to meet customer demands and comply with Fat Shack's standards and specifications, as described in the Operations Manual. Fat Shack also reserves the right to offer supplies, equipment, and products through itself or its affiliates.

Fat Shack also has the right to inspect the franchisee's operations, including inventory, products, equipment, materials, and supplies, to ensure compliance with the standards and specifications set by Fat Shack. These inspections can occur at any time during regular business hours without prior notice. Failure to maintain adequate inventory or comply with supplier requirements could result in the franchisee being in default of the agreement.

While Fat Shack requires franchisees to maintain sufficient inventory, the availability of products from Fat Shack and its approved suppliers is subject to conditions. Fat Shack does not guarantee the continued existence of any particular product and has no obligation to sell products to a franchisee who is behind on payments or otherwise in default of the agreement. If a franchisee fails to make timely payments, Fat Shack may require cash on delivery (COD) or discontinue selling products to the franchisee.