If a Fat Shack franchisee does not have an approved location when signing the Franchise Agreement, what will Fat Shack provide?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Give you specifications for the FAT SHACK Restaurant's site if you do not have an approved location when you sign the Franchise Agreement. We base our approval of any proposed site on information you submit in a form sufficient to assess the location (Section 9.1.a, Franchise Agreement). We also might provide certain lease review and lease negotiation services, the terms of which are fully disclosed in Items 5, 8, and 9 and are referenced again later in this Item 11 (Sections 6.2 and 6.3, 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 a franchisee does not have an approved location when signing the Franchise Agreement, Fat Shack will provide specifications for the restaurant's site. The approval of any proposed site is based on information the franchisee submits in a form sufficient for Fat Shack to assess the location. Fat Shack may also provide certain lease review and lease negotiation services, the terms of which are fully disclosed in Items 5, 8, and 9 and are referenced again later in Item 11 of the Franchise Agreement.
This means that prospective Fat Shack franchisees can sign the agreement even before securing a location. However, the final site must meet Fat Shack's approval, which is contingent on the franchisee providing adequate information for assessment. The FDD emphasizes that Fat Shack might offer lease review and negotiation assistance, but it is not obligated to do so.
It is important for potential franchisees to understand the site selection criteria and the process for submitting location information to Fat Shack. Franchisees should also clarify the extent of lease review and negotiation services Fat Shack is willing to provide, as these services can be valuable in securing a favorable lease agreement. The franchisee is responsible for finding and proposing the site, bearing the risk if Fat Shack ultimately disapproves the location.