Does FSI have the right to assign its option to purchase the Fat Shack Restaurant?

According to Fat Shack's 2025 Franchise Disclosure Document, FSI (the franchisor) has the unrestricted right to assign its option to purchase a Fat Shack restaurant to another party at any time before the closing date. This means Fat Shack can transfer its right to buy the restaurant to someone else.

If FSI exercises its option to purchase the Fat Shack restaurant, the closing must occur no later than 60 days after FSI provides written notice to the franchisee. FSI can pay the purchase price in full at closing or, at its option, in 24 equal consecutive monthly installments with interest at a rate equal to the prime lending rate as of the closing at FSI's primary bank.

The franchisee is obligated to sign all necessary transfer documents for the purchase of the Fat Shack Restaurant by FSI, including customary representations and warranties about ownership, condition, and title to the restaurant's assets. All assets must be transferred free and clear of liens and encumbrances, with the franchisee responsible for paying all sales and transfer taxes. The franchisee and its owners must also sign general releases, in a form satisfactory to FSI, releasing any claims against FSI and its affiliates.

The franchisee must continue operating the Fat Shack restaurant according to the franchise agreement's terms while FSI decides whether to exercise its purchase option and until the closing takes place. A condition of closing is that the Fat Shack Restaurant has remained open during that time period. FSI can choose not to exercise its option if any of the specified conditions are not met or cannot be satisfied.