Is FSI obligated to advise a Fat Shack franchisee of legislative or legal developments?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Fat Shack's 2025 Franchise Disclosure Document, Fat Shack is not obligated to advise franchisees of any legislative or other legal developments that may affect their Fat Shack Restaurant. The franchisee is solely responsible for inquiring about and becoming familiar with all applicable laws, ordinances, and regulations, and determining those actions required for compliance.
Fat Shack states that any information it provides to the franchisee regarding applicable laws, ordinances, or regulations does not relieve the 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.
This means that it is the franchisee's responsibility to stay informed about any changes in laws or regulations that could impact their business. This includes local, state, and federal laws related to food safety, employment, and other aspects of running a restaurant. Prospective franchisees should factor in the cost of legal counsel to help them stay compliant.