Is it the Fat Shack franchisee's responsibility to ensure the Restaurant Location complies with all applicable local ordinances?

According to Fat Shack's 2025 Franchise Disclosure Document, it is the franchisee's sole responsibility to ensure that the Restaurant Location complies with all applicable local ordinances, building codes, and zoning regulations. This obligation extends to purchasing or obtaining signs in the maximum number and size allowed by applicable building codes, while also adhering to Fat Shack's standards and specifications for those signs. Any modifications to Fat Shack's sign standards necessitated by local ordinances must receive prior written approval from Fat Shack.

Furthermore, the Fat Shack franchisee is responsible for obtaining all necessary permits and licenses for the lawful construction and operation of their restaurant. This includes certifications from government authorities confirming that all construction and operational requirements have been met, such as those related to zoning, access, signage, health, liquor (if applicable), fire and safety, building, and other construction permits. The franchisee must also secure licenses to do business, fictitious name registrations, sales tax permits, health and sanitation permits and ratings, and fire clearances.

In practical terms, this means a prospective Fat Shack franchisee needs to conduct thorough due diligence to understand all local regulations impacting their restaurant. This may involve consulting with local authorities, architects, and contractors to ensure compliance from the outset. Failure to comply with these regulations could result in fines, delays in opening, or even the closure of the Fat Shack restaurant. While Fat Shack may provide some guidance or review of architectural drawings, the ultimate responsibility for compliance rests with the franchisee.

This allocation of responsibility is fairly standard in the franchise industry, as local regulations can vary significantly. Franchisees are generally expected to be knowledgeable about and compliant with the specific requirements of their local jurisdiction. Therefore, a Fat Shack franchisee must be proactive in ensuring their restaurant meets all local legal requirements.