What is the Fat Shack franchisee's responsibility regarding sending copies of signed agreements to FSI?

According to Fat Shack's 2025 Franchise Disclosure Document, franchisees are required to ensure that each General Manager and other employees who have access to the Operations Manual sign a Nondisclosure and Noncompetition Agreement in a form approved by FSI (presumably, Fat Shack, Inc.). The franchisee must then send a copy of these signed agreements to FSI. This requirement ensures that all individuals with access to Fat Shack's confidential operational information are bound by confidentiality and non-competition terms.

This obligation is a standard practice in franchising, designed to protect the franchisor's proprietary information and maintain consistency across all franchise locations. The Nondisclosure and Noncompetition Agreement prevents employees from sharing sensitive information or competing with Fat Shack, either during or after their employment. By requiring franchisees to submit copies of these agreements, Fat Shack maintains a record of compliance and can enforce these agreements if necessary.

For a prospective Fat Shack franchisee, this means implementing a system to ensure that all relevant employees sign the required agreements and that copies are promptly sent to FSI. Failure to comply with this requirement could potentially lead to breaches of confidentiality or competition, which could harm the Fat Shack brand and result in legal action against the franchisee. Therefore, it is crucial for franchisees to understand and adhere to this obligation to protect both their own business and the overall Fat Shack system.