What is the Fat Shack franchisee's responsibility regarding ensuring items are available to customers?

Franchisee shall maintain at all times a sufficient supply of all menu items and related food and paper products to ensure, insofar as possible, that such items are at all times available to its customers.

Prior to commencement of operation of the FAT SHACK Restaurant and throughout the term of this Agreement, Franchisee shall purchase and stock the FAT SHACK Restaurant with inventory in such mix and quantities as FSI may determine and prescribe. FSI reserves the right to offer through itself or through its affiliates any or all of the supplies, equipment and products required for Franchisee's operation of the FAT SHACK Restaurant. In particular, prior to opening the FAT SHACK Restaurant for business, Franchisee must purchase from FSI or another supplier approved by FSI an initial starting package of supplies and materials for use in the FAT SHACK Restaurant. Franchisee shall, during the term of this Agreement, maintain product inventory levels and product inventory mix sufficient to meet customer demands and in compliance with FSI's standards and specifications as may be described in the Operations Manual from time to time.

Products supplied by FSI and its designated or approved suppliers are subject to and conditioned upon availability. Nothing in this Agreement shall be construed by FSI to be a promise or guarantee as to the continued existence of a particular product, nor shall any provision herein imply or establish an obligation on the part of FSI, its affiliates or other designated or approved suppliers to sell products to Franchisee if Franchisee is in arrears on any payment to FSI, its affiliates or other designated or approved suppliers, or otherwise in default under this Agreement. If FSI or any of its affiliates offers any products and Franchisee fails to pay for the products purchased on a timely basis according to FSI's then current published standards or if Franchisee fails to pay any other amounts due FSI or any of its affiliates, FSI may require payments to be made in cash on delivery ("COD"), and if payment is not made on that basis, FSI or its affiliates may discontinue selling the products to Franchisee.

It is understood that FSI shall have the right, at any time and without notice, to add items to, or withdraw items from, the list of products required to be offered for sale in a FAT SHACK Restaurant; to add to or delete from the list of designated or approved suppliers of products; and to change the prices, discounts, or terms of sale of any products, provided, however, no such changes in prices, discounts or terms shall affect accepted orders pending with FSI and its affiliates at the time of change. No such changes will give Franchisee the right to recover damages against, or be reimbursed by, FSI or its affiliates for any losses suffered by Franchisee, nor will Franchisee be entitled to require FSI and its affiliates to accept return of any of the products rendered obsolete by such changes.

Source: Item 23 — Receipts (FDD pages 53–223)