Is a Fat Shack franchisee responsible for complying with all applicable laws and regulations?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will conduct itself and operate its FAT SHACK Restaurant in compliance with all applicable laws, regulations and other ordinances and in such a manner so as to promote a good public image in the business community, including, if Franchisee offers alcohol beverages at its FAT SHACK Restaurant, all applicable liquor licensing laws, regulations and ordinances and dram shop laws. In connection therewith, Franchisee will be solely and fully responsible for obtaining any and all licenses to operate the FAT SHACK Restaurant. Franchisee shall keep copies of all health department, fire department, building department and other similar reports of inspections by governmental authorities on file and available for inspection by FSI. Franchisee shall immediately forward to FSI any such reports or inspections in which Franchisee has been found not in compliance with the underlying regulation. Franchisee shall also promptly notify FSI in writing of any notices of default or non-compliance under its lease or any other third-party contracts related to the operation of the FAT SHACK Restaurant, by sending copies of all such notices to FSI. FSI has no obligation to advise Franchisee of any legislative or other legal developments that may affect its FAT SHACK Restaurant. Franchisee is solely responsible for inquiring about and becoming familiar with all applicable laws, ordinances, and regulations, and determining those actions required for compliance. Any information FSI provides to Franchisee regarding applicable laws, ordinances, or regulations does not relieve Franchisee of its responsibility to consult with its own legal advisor and otherwise take appropriate action to inquire about and comply with applicable laws, ordinances, and regulations.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, franchisees are indeed responsible for complying with all applicable laws and regulations. The franchisee must operate their Fat Shack restaurant in compliance with all laws, regulations, and ordinances. This includes promoting a positive public image and adhering to liquor licensing laws if alcohol is served.
Fat Shack franchisees are solely responsible for securing all necessary licenses to operate their restaurant. They must maintain records of inspections from various governmental authorities, such as health, fire, and building departments, and promptly report any non-compliance to Fat Shack. Additionally, franchisees must inform Fat Shack of any defaults or non-compliance notices related to their lease or other third-party contracts.
Fat Shack does not have any obligation to inform franchisees of legislative or legal changes that could impact their business. Franchisees are expected to stay informed about all relevant laws and regulations and to seek legal counsel as needed. Any information provided by Fat Shack regarding laws and regulations does not relieve the franchisee of their responsibility to ensure compliance.