When must a Fat Shack franchisee provide FSI with a copy of the Nondisclosure and Noncompetition Agreement signed by their officers, directors, partners, shareholders, and General Manager (and spouse of the General Manager)?

According to the 2025 Fat Shack FDD, a franchisee must ensure that each General Manager and other employees who have access to the Operations Manual sign a Nondisclosure and Noncompetition Agreement in a form approved by FSI (Fat Shack Inc.). The franchisee is then required to send a copy of these signed agreements to FSI.

For a prospective Fat Shack franchisee, this means that after commencement of operations, they must ensure that their General Manager and any employees with access to the operations manual sign the required agreement. This is a crucial step to protect Fat Shack's confidential information and maintain uniformity across all franchise locations.

This requirement is fairly standard in franchising, as franchisors need to protect their trade secrets and operational methods. By requiring these agreements, Fat Shack aims to prevent the unauthorized disclosure of sensitive information and ensure that key personnel do not compete with the franchise system, either during or after their employment. The franchisee bears the responsibility of collecting these signed agreements and submitting them to Fat Shack, demonstrating their compliance with this important obligation.