Where should a Fat Shack franchisee sign Exhibit C?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT III TO FRANCHISE AGREEMENT
AUTHORIZATION AGREEMENT FOR PREARRANGED PAYMENTS (DIRECT DEBITS)
The undersigned franchisee ("Franchisee") hereby (1) authorizes FAT SHACK INC. ("Company") to initiate debit entries and/or credit correction entries to the undersigned's checking and/or savings account indicated below for payment of all fees, amounts and obligations that become payable by Franchisee to Company; and (2) authorizes and requests the depository designated below ("Depository") to debit such account pursuant to Company's instructions without responsibility for the correctness of these payments, subject to there being sufficient funds in Franchisee's account to cover such debit entries.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
Based on the 2025 Fat Shack Franchise Disclosure Document, Exhibit III, not Exhibit C, is the Authorization Agreement for Prearranged Payments (Direct Debits). The franchisee must sign this exhibit to authorize Fat Shack Inc. to initiate debit entries to the franchisee's checking or savings account for payment of all fees, amounts, and obligations payable to the company. The franchisee also authorizes their depository to debit the account pursuant to Fat Shack's instructions, assuming sufficient funds are available.
Exhibit III requires the franchisee to provide their banking information and sign to authorize direct payments. This agreement ensures that Fat Shack can automatically collect payments from the franchisee's account for ongoing fees and other financial obligations. This is a standard practice in franchising, as it streamlines the payment process and reduces the risk of late or missed payments.
Prospective Fat Shack franchisees should carefully review Exhibit III and understand the terms and conditions of the direct debit authorization. They should also ensure that they have sufficient funds in their account to cover the payments and that they are comfortable with the level of control that Fat Shack has over their account. If a franchisee prefers to pay through other means, they should discuss this with Fat Shack before signing the agreement.