Is FSI obligated to select or acquire a location on behalf of a Fat Shack franchisee?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall not, without the prior written approval of FSI and without signing a Subsequent Franchise Agreement related to the FAT SHACK Restaurant for a particular location, enter into any contract for the purchase or lease of any premises for use as a FAT SHACK Restaurant. FSI will assist Franchisee in the selection and approval of locations for its FAT SHACK Restaurants in accordance with the terms and conditions of the applicable Subsequent Franchise Agreement. Franchisee acknowledges that FSI has no obligation to select or acquire a location on behalf of Franchisee.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, Fat Shack (FSI) is not obligated to select or acquire a location on behalf of the franchisee. However, FSI will assist the franchisee in the selection and approval of locations for their Fat Shack restaurant.
Specifically, Fat Shack will provide general criteria for a satisfactory site and determine whether a proposed site fulfills the necessary criteria before formal acceptance of the site selected by the franchisee. The franchisee is responsible for submitting a completed site submittal package with all required information for FSI to assess the proposed location.
Ultimately, the responsibility for site selection, acquisition, and development rests solely with the franchisee, unless otherwise specified in the Franchise Agreement or another written agreement executed by FSI. Fat Shack's acceptance of a site does not guarantee the success or profitability of the location.