From whom must a Fat Shack franchisee purchase the POS System components?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall purchase or lease for use in the operation of the FAT SHACK Restaurant an electronic cash register point of sale system ("POS System") approved by FSI that accurately records every sale or other transaction. Franchisee shall purchase the POS System components from a designated or approved supplier. Franchisee must purchase and maintain throughout the term of this Agreement a maintenance and support agreement for the POS System and other required computer hardware and software with FSI or FSI's designated supplier. Franchisee shall submit any reports required under this Agreement in a format designated from time to time by FSI. Franchisee hereby grants FSI the right to access the POS System and authorizes FSI to obtain sales, sales mix, cost, labor, expenditure, and revenue information directly by modem or otherwise on a continuous basis and without interruption, except for power outages and other occurrences outside of Franchisee's control. Further, Franchisee also grants FSI the right to publish all such information obtained by FSI to other FAT SHACK franchise owners for comparative analysis purposes. Throughout the term of this Agreement, Franchisee shall be obligated to upgrade or update the POS System and Franchisee's computer hardware and software, or change or convert to an entirely new POS System and computer hardware and software, at Franchisee's sole cost, to meet FSI's then-current standards and specifications.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, a franchisee must purchase the POS system components from a designated or approved supplier. This means Fat Shack pre-approves specific vendors, and franchisees are obligated to buy the POS system from those sources.
This requirement ensures uniformity across all Fat Shack locations, allowing for standardized data collection and reporting. Fat Shack retains the right to access the POS system to obtain sales, sales mix, cost, labor, expenditure, and revenue information. This data can be accessed continuously, barring any power outages or events outside of the franchisee's control. Fat Shack also has the right to publish this information to other Fat Shack franchise owners for comparative analysis.
Furthermore, the franchisee is responsible for maintaining a maintenance and support agreement for the POS system and other required computer hardware and software with Fat Shack or its designated supplier. The franchisee is also obligated to upgrade or update the POS system and computer hardware and software, or change to a new system, to meet Fat Shack's current standards and specifications, all at the franchisee's sole cost. This ensures that all Fat Shack locations operate on the same technology standards, but it also means the franchisee bears the financial burden of these updates.