What is the Fat Shack franchisee's responsibility regarding taking appropriate action to comply with applicable laws?
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 are responsible for operating their Fat Shack restaurant in compliance with all applicable laws, regulations, and ordinances. This includes promoting a good public image in the business community and adhering to liquor licensing and dram shop laws if the restaurant serves alcohol. The franchisee is fully responsible for obtaining all necessary licenses to operate the Fat Shack restaurant.
Fat Shack franchisees must keep copies of all inspection reports from health, fire, and building departments, and other governmental authorities on file and available for Fat Shack's inspection. Franchisees must immediately forward any reports or inspections to Fat Shack where non-compliance has been found. Additionally, franchisees must promptly notify Fat Shack in writing of any default or non-compliance notices under their lease or other third-party contracts related to the restaurant's operation.
Fat Shack is not obligated to advise franchisees of any legislative or legal developments that may affect their restaurant. Franchisees are solely responsible for inquiring about and becoming familiar with all applicable laws, ordinances, and regulations, and determining the actions needed for compliance. Any information Fat Shack provides regarding these laws does not relieve the franchisee of their responsibility to consult with their own legal advisor and take appropriate action to comply with all applicable legal requirements.