When must the franchisee provide Fat Shack with a copy of each signed Nondisclosure and Noncompetition Agreement?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall require each of its General Managers and other employees who have access to the Operations Manual to sign the Nondisclosure and Noncompetition Agreement in a form approved by FSI, and send a copy of such signed agreements to FSI.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 41–42)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the franchisee is required to have each General Manager and other employees who have access to the Operations Manual sign a Nondisclosure and Noncompetition Agreement. The form of this agreement must be approved by Fat Shack Inc. (FSI).
The franchisee must then send a copy of each of these signed agreements to FSI. The FDD does not specify a particular timeframe for sending these agreements to FSI, only that the franchisee must ensure these employees sign the agreement if they have access to the operations manual.
It is important for prospective franchisees to understand this obligation, as failure to comply could result in a breach of the franchise agreement. A potential franchisee should clarify with Fat Shack the expected timeframe for submitting these signed agreements to ensure compliance.