If required, when must a Fat Shack franchisee provide a copy of the Nondisclosure and Noncompetition Agreement to the franchisor?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are a corporation, limited liability company or partnership, or other entity, we do not require your General Manager to own an equity interest in you. However, your General Manager, other employees and all of your officers, directors, partners, shareholders, and members (and, if you are an individual, your spouse) must agree to be bound by the nondisclosure and noncompetition provisions of the Franchise Agreement, by signing our form of agreement attached to this Disclosure Document as Attachment C. You must provide us a copy of each Nondisclosure and Noncompetition Agreement at the time it is signed and thereafter upon our request. We make no other recommendations and have no other requirements regarding employment or other written agreements between you and your employees.
Source: Item 14 — Patents, Copyrights, and Proprietary Information (FDD pages 40–41)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, if the franchisee is a corporation, limited liability company, partnership, or other entity, the franchisee must provide Fat Shack with a copy of each Nondisclosure and Noncompetition Agreement at the time it is signed. This agreement must be signed by the General Manager, other employees, and all officers, directors, partners, shareholders, and members. If the franchisee is an individual, their spouse must also sign the agreement.
Fat Shack also requires each of the franchisee's officers, directors, shareholders, partners, or members, and their respective spouses to sign an agreement (Exhibit V to the Franchise Agreement). This agreement states that they personally assume and agree to perform all obligations of the franchisee and to be bound by the terms of the Franchise Agreement, whichever is applicable.
Furthermore, the franchisee must provide these agreements to Fat Shack not only when they are initially signed but also upon Fat Shack's request at any time thereafter. This ensures that Fat Shack maintains an updated record of all parties bound by the non-disclosure and non-competition terms, allowing them to enforce these provisions effectively.