What happens if Fat Shack objects to a lease provision during the lease review process?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
If we object to a lease provision during our review of the lease, then the lease provision must be changed in a manner that is acceptable to us or removed, or you must find another suitable site for the Restaurant Location with lease terms that are acceptable to us. We may charge you an additional fee for reviewing another lease (Section 6.4, Franchise Agreement). If you have failed to obtain our approval for your site within the time frame indicated in this paragraph, then we may terminate your Franchise Agreement.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 28–36)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, if Fat Shack objects to a lease provision during its review, the franchisee has limited options. The franchisee must either change the lease provision to be acceptable to Fat Shack, remove the provision entirely, or find an alternative site with lease terms that Fat Shack approves.
This stipulation gives Fat Shack significant control over the lease terms for the restaurant location. If the franchisee is unable to negotiate a lease that meets Fat Shack's approval, they must find a new location. This process can be time-consuming and may incur additional costs. Fat Shack also retains the right to charge an additional fee for reviewing another lease, adding to the financial burden.
Ultimately, if the franchisee fails to secure Fat Shack's approval for a site within the specified timeframe, Fat Shack reserves the right to terminate the Franchise Agreement. This underscores the importance of aligning site selection and lease negotiations closely with Fat Shack's requirements to avoid potential termination and loss of the franchise investment.