Does Fat Shack guarantee the success or profitability of a site based on its acceptance?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
a. Assistance related to the acceptance of a site for the FAT SHACK Restaurant, although Franchisee acknowledges that FSI shall have no obligation to select or acquire a site on behalf of Franchisee. FSI's assistance will consist of, at a minimum, the provision of general criteria for a satisfactory site and a determination of whether a proposed site fulfills the requisite criteria prior to formal acceptance of a site selected by Franchisee. FSI bases its approval of any proposed site on information submitted by Franchisee in a form sufficient to allow FSI to assess the proposed location. Site selection, acquisition and development shall be the sole obligation of Franchisee, except as may be set forth in this Agreement or any other written agreement executed by FSI. Franchisee acknowledges that FSI is under no obligation to provide additional site selection services other than as may be set forth in a written, executed agreement and that FSI's acceptance of the site does not imply or guarantee the success or profitability of the site in any manner whatsoever.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, Fat Shack provides assistance related to site acceptance for a Fat Shack Restaurant. However, the franchisee acknowledges that Fat Shack has no obligation to select or acquire a site on behalf of the franchisee. Fat Shack's assistance includes providing general criteria for a satisfactory site and determining whether a proposed site fulfills the necessary criteria before formal acceptance.
Fat Shack bases its approval of any proposed site on information submitted by the franchisee. The franchisee is solely responsible for site selection, acquisition, and development, unless otherwise agreed in writing. Fat Shack is under no obligation to provide additional site selection services beyond what is in a written agreement.
The FDD clearly states that Fat Shack's acceptance of a site does not imply or guarantee the success or profitability of the site. The success of the Fat Shack Restaurant depends on the franchisee's abilities as an independent businessperson. Prospective franchisees should understand that while Fat Shack offers support in site selection, the ultimate responsibility for the site's performance rests with them, and Fat Shack does not ensure financial success based on site approval.