What information should a Fat Shack franchisee include when notifying Fat Shack about an unapproved supplier?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
If you want to purchase or lease any inventory items, products, equipment, supplies, or services we have not approved or through a supplier who we have not previously approved, you must notify us in writing and obtain our approval in advance. The notification should include sufficient specifications, photographs, drawings and other information and samples to determine whether those items or those suppliers meet our specifications. You must reimburse us for the actual cost of any testing and the reasonable cost of investigation to determine whether those items or suppliers meet our specifications. We will advise you within 30 days after we receive all required information and complete any inspection or investigation whether the items or suppliers meet our specifications. We may, in our sole discretion, for any reason whatsoever, elect to withhold approval of the items or suppliers.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 22–26)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, if a franchisee wants to purchase items from a supplier not already approved by Fat Shack, they must first seek approval from Fat Shack. The franchisee's notification to Fat Shack must be in writing and include sufficient specifications, photographs, drawings, and other information and samples. This allows Fat Shack to adequately assess whether the items or the supplier meet their required standards.
In practice, this means a Fat Shack franchisee cannot simply switch suppliers without formal permission. They must compile a comprehensive package of information about the proposed supplier and their products. This requirement ensures that all products used in the Fat Shack franchise meet the franchisor's standards, maintaining consistency and quality across all locations.
The franchisee is also responsible for reimbursing Fat Shack for the actual cost of any testing and the reasonable cost of investigation required to determine if the items or suppliers meet Fat Shack's specifications. Fat Shack will then advise the franchisee within 30 days after receiving all required information and completing any inspection or investigation whether the items or suppliers meet their specifications. However, Fat Shack retains the sole discretion to withhold approval for any reason.
This process highlights the importance of adhering to Fat Shack's approved supplier list to avoid additional costs and potential delays. Franchisees should carefully consider these requirements and the potential for disapproval when making purchasing decisions.