What is the Fat Shack franchisee's responsibility regarding promoting a good public image in the business community?
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 the 2025 Fat Shack Franchise Disclosure Document, franchisees must operate their Fat Shack restaurant in a way that promotes a positive public image within the business community. This includes complying with all applicable laws, regulations, and ordinances. If the franchisee offers alcohol, they must adhere to all liquor licensing and dram shop laws.
Fat Shack franchisees are solely responsible for obtaining all necessary licenses to operate their restaurant. They must maintain copies of all inspection reports from health, fire, and building departments, making them available for inspection by Fat Shack. Franchisees must also immediately forward any reports indicating non-compliance with regulations to Fat Shack and promptly notify Fat Shack in writing of any default notices or non-compliance issues related to their lease or other third-party contracts.
While Fat Shack has no obligation to advise franchisees on legislative or legal developments, franchisees are responsible for staying informed about all applicable laws and regulations. Any information provided by Fat Shack does not relieve the franchisee of their responsibility to consult with legal counsel and ensure compliance. This ensures that each Fat Shack location maintains a reputation that reflects positively on the brand.