What is the Fat Shack franchisee's obligation regarding delivering a copy of the signed lease or other acquisition document to FSI?

According to the 2025 Fat Shack Franchise Disclosure Document, franchisees are obligated to promptly notify FSI in writing of any notices of default or non-compliance under their lease. This includes sending copies of all such notices to FSI. This requirement ensures that Fat Shack is informed of any potential issues with the franchisee's lease agreement that could impact the operation of the Fat Shack Restaurant.

This obligation is part of the franchisee's broader responsibility to comply with all agreements with third parties related to the Fat Shack Restaurant, particularly the provisions of the lease for the Restaurant Location. The franchisee is also responsible for keeping 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. Furthermore, the franchisee must immediately forward to FSI any such reports or inspections in which the franchisee has been found not in compliance with the underlying regulation.

By requiring franchisees to keep Fat Shack informed of any lease-related issues or non-compliance notices, Fat Shack aims to maintain a consistent brand image and operational standard across all franchise locations. This allows Fat Shack to proactively address any potential problems and provide support to franchisees when necessary. However, it is important to note that FSI has no obligation to advise the franchisee of any legislative or other legal developments that may affect its Fat Shack Restaurant; the franchisee is solely responsible for staying informed of all applicable laws and regulations.

In summary, while the FDD excerpt focuses on notices of default or non-compliance, it does not explicitly state that a franchisee must deliver a copy of the signed lease to FSI. However, the franchisee is obligated to comply with all lease provisions and to inform FSI of any issues related to the lease, which implies a need for FSI to be aware of the lease terms.