How does Fat Shack handle sales through special venues and channels, as detailed in section 3.4?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
FSI reserves the right for itself and its affiliates to market, offer, and sell, and to authorize third parties to market, offer, and sell, any and all products and services through venues and channels of distribution other than franchised and company-owned FAT SHACK Restaurants, including but not limited to grocery stores, wholesale distributors, coffee shops, restaurants that are not FAT SHACK Restaurants, offices, hospitality and food service venues, or through retail store display, catalog sales, Internet and other electronic methods, and catering (collectively, "Special Venues and Channels"). The
products and services available through Special Venues and Channels may include those that are the same as or similar to those which Franchisee will offer and sell, such as "Fat sandwiches," or entirely different services and products. The Special Venues and Channels may be in any location, including in close proximity to Franchisee's Restaurant Location. The marketing, offer, and sale of products and services through the Special Venues and Channels may be under the Marks and Licensed Methods or different trademarks, service marks, and methods. The prices advertised and charged by FSI and its affiliates for the sale of the products and services to operators of Special Venues and Channels, and the prices advertised and charged by the operators of the Special Venues and Channels to third parties and the public for the products and services, may be higher or lower than the prices at which the same or similar products and services are made available by FSI and its affiliates to Franchisee and the prices charged by Franchisee to customers of Franchisee's FAT SHACK Restaurant. Franchisee specifically acknowledges the foregoing rights of FSI and its affiliates and understands that it may face competition from these Special Venues and Channels.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, Fat Shack and its affiliates retain the right to market, offer, and sell products and services through various venues and channels beyond franchised and company-owned Fat Shack restaurants. These include, but are not limited to, grocery stores, wholesale distributors, coffee shops, restaurants that are not Fat Shack restaurants, offices, hospitality and food service venues, retail store displays, catalog sales, the Internet, other electronic methods, and catering, which are collectively referred to as "Special Venues and Channels."
The products and services offered through these Special Venues and Channels may be the same as or similar to those offered by franchisees, such as "Fat sandwiches," or they may be entirely different. These venues can be located anywhere, including in close proximity to a franchisee's restaurant location. The marketing, offering, and sale of products and services through these channels may occur under Fat Shack's trademarks and methods or under different trademarks and methods.
Furthermore, the prices charged by Fat Shack and its affiliates to operators of Special Venues and Channels, as well as the prices charged by these operators to the public, may be higher or lower than the prices at Fat Shack restaurants. The FDD emphasizes that franchisees acknowledge Fat Shack's rights regarding these Special Venues and Channels and understand that they may face competition from them.