If Fat Shack requires documents to be sent for an audit, what is the Associate's obligation?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
If FSI notifies Associate that documents are to be sent to a location other than Associate's business location for the purpose of conducting an inspection or audit at that location, Associate shall provide the requested documents to FSI within the time period set forth in FSI's notice.
FSI may audit and inspect documents covering a period beginning with the date on which Associate's Affiliation commenced and ending on the date such audit is concluded.
All documents provided for FSI's inspection or audit must be certified by Associate and the appropriate affiliated party,
if applicable, as true, complete and correct. Inspections and audits may be conducted following the expiration or termination of Associate's Affiliation for any reason.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, if Fat Shack notifies an Associate that documents are required to be sent to a location other than the Associate's business location for an inspection or audit, the Associate must provide the requested documents to Fat Shack within the timeframe specified in Fat Shack's notice.
Fat Shack has the right to audit and inspect documents covering the period from when the Associate's affiliation commenced until the date the audit concludes. All documents provided for inspection or audit must be certified by the Associate and any applicable affiliated party as true, complete, and correct. These audits and inspections can also occur after the Associate's affiliation has expired or been terminated for any reason.
This means a prospective Fat Shack franchisee should be prepared to promptly compile and submit any requested financial or business records if asked to do so by Fat Shack. Failure to comply within the given timeframe could potentially lead to penalties or other issues under the franchise agreement. The franchisee also bears the cost of collecting and delivering these documents.