Is a Fat Shack franchisee required to participate in all promotional campaigns prescribed by FSI?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee.
- Except as prohibited or limited by law, Franchisee shall fully participate in all promotional campaigns, prize contests, special offers, gift card programs, discount programs including deal-of-the-day and crowdsourcing programs, and other programs, whether international, national, regional, or local in nature (including the introduction of new products or services or other marketing programs directed or approved by FSI), which are prescribed from time to time by FSI. Franchisee shall be responsible for the costs of such participation. In order to participate in FSI's gift card program, Franchisee will be required to utilize the gift card sales and reporting services of a supplier designated by FSI and pay all fees and costs related to those services, which are subject to change by FSI or the supplier periodically. In addition, Franchisee shall honor any coupons, gift certificates, gift cards, discounts, or other authorized promotional offers of FSI at Franchisee's sole cost unless otherwise specified in writing by FSI. Franchisee acknowledges that FSI frequently implements such promotions intended to increase customer awareness and build business on an international, national, regional, or local level, and Franchisee's participation in these promotions is essential to their success. Franchisee acknowledges that FSI has no obligation to reimburse Franchisee for the costs associated with participating in these promotions. In FSI's discretion, it may create and make available to the public a mobile device application for the FAT SHACK system, which may incorporate these type of promotional programs and offers, which Franchisee must participate in and honor at its sole cost. FSI may impose additional conditions and requirements related to the application when operational. From time to time a promotion may not benefit all franchisees in the FAT SHACK system; and if the promotion is not offered in the region, or another unknown hardship arises, FSI may, at FSI's option, exempt Franchisee and/or other franchisees on a case-by-case basis.
- s. Unless prohibited by applicable law, FSI may periodically set a maximum or minimum price that Franchisee may advertise and charge for products and services offered by its FAT SHACK Restaurant. If FSI establishes a maximum price for any products or services, Franchisee shall not offer or sell those products or services at any greater price. If FSI establishes a minimum price for any products or services, Franchisee shall not offer or sell those products or services at any lesser price. If FSI does not establish pricing limits, it may establish suggested prices. In that case, any prices that FSI recommends to Franchisee are merely recommendations and Franchisee may establish its own prices, which may be higher or lower than FSI's recommended prices. Franchisee must abide by FSI's advertising policies related to advertising prices.
- t. Franchisee expressly authorizes FSI and its approved suppliers to contact Franchisee by e-mail, telephone, mail, or any other means related to any aspect of the FAT SHACK Restaurant, authorized products and services, this Agreement, or the FSI franchise system, for so long as this Agreement remains in effect. Franchisee expressly authorizes FSI to disclose Franchisee's contact information to FSI's approved and designated suppliers to enable such suppliers to contact Franchisee. Franchisee acknowledges that these communications are necessary to facilitate and keep Franchisee updated regarding the ongoing franchise relationship.
- u. In all communications with FSI's representatives, Franchisee and its Authorized Representatives (defined in Section 12.3) must conduct themselves in a dignified, respectful, courteous, and professional manner. No hostile, threatening, or offensive statements or behavior toward any FSI representative is permitted.
- v.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, franchisees are generally required to participate in all promotional campaigns prescribed by FSI, the franchisor. These campaigns can include prize contests, special offers, gift card programs, discount programs, and other marketing initiatives at the international, national, regional, or local level. This also includes the introduction of new products or services. Franchisees are responsible for covering the costs associated with their participation in these promotions.
Fat Shack franchisees must also honor any coupons, gift certificates, gift cards, discounts, or other authorized promotional offers of FSI at their own expense, unless FSI specifies otherwise in writing. The FDD emphasizes that these promotions are intended to increase customer awareness and build business, and franchisee participation is considered essential for their success. Fat Shack may also introduce a mobile device application that incorporates promotional programs, which franchisees would be required to participate in and honor at their own cost.
However, Fat Shack does retain the option to exempt a franchisee from participating in a promotion on a case-by-case basis if the promotion is not offered in the franchisee's region or if another hardship arises. Furthermore, franchisees are required to engage in all types of advertising, marketing, and promotional activities as prescribed by FSI, and they cannot engage in such activities without FSI's prior written consent. This ensures that all marketing efforts align with the brand's standards and specifications.
In addition to mandatory participation in FSI-led promotions, Fat Shack franchisees must obtain prior written approval from FSI for any independent advertising or marketing programs. This includes various forms of advertising such as "Yellow Pages" listings, newspaper ads, flyers, brochures, coupons, direct mail pieces, specialty items, radio and television advertising, and internet web pages. This requirement underscores the franchisor's control over brand messaging and ensures consistency across all Fat Shack locations.