Is a Fat Shack franchisee required to offer delivery services?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
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Franchisee must offer delivery services through its FAT SHACK Restaurant.
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Franchisee shall obtain and maintain computer hardware, software and a high speed Internet connection meeting FSI's standards and specifications as they may exist from time to time.
Franchisee shall allow FSI continuous access to the data and information on Franchisee's computers and point of sale system without interruption, except for power outages and other events outside of Franchisee's control.
Franchisee agrees that FSI may assign an electronic mail address to Franchisee and Franchisee agrees to use such address to access messages and information posted by FSI and other FAT SHACK franchise owners.
Franchisee shall check the e-mail address it designates for notice purposes (and, if applicable, any e-mail address that may be provided by FSI) at least once per business day, and respond to all e-mail messages appropriately within one business day.
FSI may post information about Franchisee's FAT SHACK Restaurant on FSI's intranet system and/or on FSI's website(s).
In the event FSI sets up an electronic intranet system, Franchisee agrees to participate in FSI's electronic intranet system whereby FSI and all FAT SHACK Restaurant owners and Area Representatives exchange information electronically.
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Franchisee must accept credit cards, debit cards and Apple Pay from customers of its FAT SHACK Restaurant.
The Payment Card Industry ("PCI") requires all companies that process, store, or transmit credit or debit card information to protect the cardholders' information by complying with the PCI Data Security Standard ("PCI DSS").
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, franchisees must offer delivery services through their Fat Shack Restaurant. The FDD also states that a major component of the Licensed Methods is the delivery of its products to customer's residential and work locations, including late night delivery services.
This requirement means that prospective franchisees need to factor in the costs and logistics associated with providing delivery services, such as hiring delivery staff, insuring vehicles, and managing delivery operations. It also highlights the importance of technology and efficient systems to manage orders and deliveries, especially during late-night hours when Fat Shack is expected to remain open.
By mandating delivery services, Fat Shack aims to maintain a consistent brand experience and meet customer expectations for convenience. This requirement ensures that all Fat Shack locations offer a core service that contributes to the brand's identity and market position. Franchisees should be prepared to invest in the necessary resources and infrastructure to meet this obligation.