Does a Fat Shack franchisee have the option to renew or extend the franchise term?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise or | Summary | |
|---|---|---|---|
| Other Agreement | |||
| b. Renewal or extension of the | Section 18.3 of FA | Option to renew for up to three additional 5 year terms | |
| term | after the initial term. | ||
| c. Requirements for you to renew or extend | Sections 18.3 and 18.4 of FA | Written notice at least 180 days before expiration, sign then-current form of Franchise Agreement (which may contain materially different terms from your original contract), sign Successor Franchise Rider in the form attached as Attachment F containing a release, be in compliance with Franchise Agreement, pay fee, and renovate (if applicable). |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 43–46)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, franchisees have the option to renew their franchise agreement for up to three additional terms of five years each after the initial term expires. The initial franchise agreement term is seven years.
To renew the franchise agreement, a Fat Shack franchisee must provide written notice to the franchisor at least 180 days before the expiration of the current term. Additionally, the franchisee must sign the then-current form of the Franchise Agreement, which may contain terms that are materially different from the original agreement. The franchisee is also required to sign a Successor Franchise Rider, which includes a release, and must be in full compliance with the existing Franchise Agreement.
Furthermore, the franchisee must pay the renewal fee and complete any required renovations to the Fat Shack location. It is important to note that renewal terms and conditions can change, and the new agreement may differ significantly from the original. Prospective franchisees should carefully review the renewal requirements and consider the potential impact of these changes on their business before investing in a Fat Shack franchise.