Does a Fat Shack franchisee need written approval to relocate their restaurant?

According to Fat Shack's 2025 Franchise Disclosure Document, a franchisee must obtain prior written approval from Fat Shack to relocate their restaurant location. Generally, Fat Shack will approve the relocation if the new location is within the franchisee's protected territory and meets Fat Shack's standards for an initial restaurant location. However, Fat Shack reserves the right to establish further standards for relocation. This means that while a franchisee may have a protected territory, relocation is not guaranteed and is subject to Fat Shack's approval based on specific criteria.

This requirement is fairly standard in franchising, as franchisors want to ensure that any relocation makes business sense and protects the brand. The franchisee bears the responsibility of finding a suitable new location that meets Fat Shack's standards. The FDD specifies that Fat Shack bases its location approval on factors such as the viability of the location and the demographics.

It is important for a prospective Fat Shack franchisee to understand the criteria Fat Shack uses to evaluate potential relocation sites. While the FDD mentions general factors, franchisees should seek specific details on these standards during their due diligence. This will help them assess the feasibility of relocation should the need arise during the franchise term. The franchisee should also clarify what additional standards Fat Shack might establish in the future, as these could impact relocation options.