Is landlord approval a condition for transferring a Fat Shack restaurant lease to a transferee?

According to Fat Shack's 2025 Franchise Disclosure Document, a franchisee needs to obtain the landlord's approval to transfer the Fat Shack restaurant lease to a new owner. Specifically, Item 23 outlines several pre-conditions that must be met before a transfer can occur. One of these conditions explicitly states that the franchisee's landlord must allow the transfer of the restaurant's lease to the proposed new franchisee.

This requirement means that if a Fat Shack franchisee wants to sell their business, they must first get the green light from their landlord. This is a standard practice in franchising, as the landlord needs to be comfortable with the new tenant taking over the lease obligations. Without this approval, the transfer cannot proceed, regardless of whether the potential buyer meets all other qualifications set by Fat Shack.

For a prospective Fat Shack franchisee, this underscores the importance of maintaining a good relationship with the landlord and ensuring the lease agreement allows for easy transferability. It also highlights the need to involve the landlord early in any discussions about selling the franchise to avoid potential roadblocks down the line. This condition protects Fat Shack by ensuring that the new franchisee has a secure location to operate from, which is crucial for the continued success of the franchise.