If a fire suspends operations at a Fat Shack restaurant, does that automatically prevent termination for abandonment?

According to Fat Shack's 2025 Franchise Disclosure Document, a fire that suspends operations at a Fat Shack restaurant does not automatically lead to termination for abandonment under specific conditions. If the full operation of the Fat Shack restaurant is suspended or terminated due to fire, flood, earthquake, or other similar causes beyond the franchisee's control and not related to the availability of funds to the franchisee, this may prevent termination for abandonment.

However, the franchisee must also notify Fat Shack immediately of any fire or other casualty damage to the restaurant location. If Fat Shack determines that the damage is significant enough to make continued operation impractical, the franchisee has 90 days to select a new location, get it approved by Fat Shack (potentially incurring a Lease Review Fee if more than two locations are reviewed), and recommence operations. Failure to do so within this 90-day period may result in Fat Shack terminating the agreement.

If Fat Shack deems the damage not significant enough to render continued operation impractical, the franchisee is expected to make all necessary repairs as quickly as possible to restore the restaurant to its condition before the event, according to Fat Shack's standards and specifications. Therefore, while a fire can prevent immediate termination for abandonment, the franchisee must take specific actions, such as notifying Fat Shack and either repairing the location or finding a new one within a specified timeframe, to avoid potential termination.