Is a Fat Shack franchisee required to participate in all promotions instituted by FSI?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 instituted by FSI (Fat Shack International). This includes a wide array of programs such as prize contests, special offers, gift card programs, and discount programs, whether they are international, national, regional, or local. These promotions may also include the introduction of new products or services, or other marketing programs directed or approved by FSI.
Franchisees are responsible for covering the costs associated with participating in these promotions. They 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. Fat Shack may also introduce a mobile device application that incorporates these promotional programs, which franchisees must participate in and honor at their own cost.
However, Fat Shack retains the option to exempt franchisees from participating in a promotion on a case-by-case basis if the promotion does not benefit all franchisees, is not offered in the franchisee's region, or if another hardship arises. Furthermore, franchisees must obtain FSI's prior written approval for any advertising or marketing programs not previously approved by FSI. Franchisees must also conduct a grand opening advertising and promotional program for their Fat Shack restaurant in a manner specified by FSI, utilizing marketing and public relations programs and materials that FSI has either developed or approved.