If a Fat Shack franchisee dies, what is the deadline to assign the franchise to an approved buyer?

Question

Accepted Answer

|    | Provision                                                                    | Section in Franchise or Other Agreement        | Summary                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|----|------------------------------------------------------------------------------|---------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| m. | Conditions for our approval of transfer | Section 17.2 of FA; Sections 5.3 and 5.4 of DA | For the Franchise Agreement, the following conditions will apply: Full compliance, transferee qualifies, all amounts due are paid in full, all reports submitted, you have not breached any obligation during 60 day period before you requested our consent to transfer or during period between your request and the effective date of the transfer, transferee signs our then current form of franchise agreement (which may differ materially), transferee and its owners and affiliates do not operate or have ownership interest in competitive business, lease transferred, subordination of amounts due to you and your owners from transferee, completion of training, transfer fee paid, on-site assistance fee paid (if applicable), and sign and deliver other required documents (including release). For the Development Agreement, the following conditions will apply in addition to those listed above: Fee for each undeveloped FAT SHACK Restaurant paid, and concurrent transfer of underlying Franchise Agreements. |
| n. | Our right of first refusal to acquire your business | Section 17.4 of FA; Section 5.6 of DA | For 30 day period, we have right to match offer. |
| o. | Our option to purchase your business | Section 19.6 of FA | Fair market value of your FAT SHACK Restaurant, less the amount of the goodwill associated with our Marks. |
| p. | Your death or disability | Section 17.6 of FA | Franchise must be assigned to approved buyer within 120 days (or longer if required by probate proceedings); there must at all times be a General Manager at the FAT SHACK Restaurant. |

Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 43–46)

If a Fat Shack franchisee dies, what is the deadline to assign the franchise to an approved buyer?

Answer from 2025 FDD Document

What This Means (2025 FDD)

	Provision	Section in Franchise or Other Agreement	Summary
m.	Conditions for our approval of transfer	Section 17.2 of FA; Sections 5.3 and 5.4 of DA	For the Franchise Agreement, the following conditions will apply: Full compliance, transferee qualifies, all amounts due are paid in full, all reports submitted, you have not breached any obligation during 60 day period before you requested our consent to transfer or during period between your request and the effective date of the transfer, transferee signs our then current form of franchise agreement (which may differ materially), transferee and its owners and affiliates do not operate or have ownership interest in competitive business, lease transferred, subordination of amounts due to you and your owners from transferee, completion of training, transfer fee paid, on-site assistance fee paid (if applicable), and sign and deliver other required documents (including release). For the Development Agreement, the following conditions will apply in addition to those listed above: Fee for each undeveloped FAT SHACK Restaurant paid, and concurrent transfer of underlying Franchise Agreements.
n.	Our right of first refusal to acquire your business	Section 17.4 of FA; Section 5.6 of DA	For 30 day period, we have right to match offer.
o.	Our option to purchase your business	Section 19.6 of FA	Fair market value of your FAT SHACK Restaurant, less the amount of the goodwill associated with our Marks.
p.	Your death or disability	Section 17.6 of FA	Franchise must be assigned to approved buyer within 120 days (or longer if required by probate proceedings); there must at all times be a General Manager at the FAT SHACK Restaurant.