Must the Fat Shack lease give the landlord's consent to the use of Fat Shack's marks and signage?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
The primary lease must contain certain provisions granting us certain rights, as your franchisor, including:
- (i) The initial term of the lease, or the initial term together with any renewal terms (for which rent must be specified in the lease) must be for at least seven years;
- (ii) The lease must give the landlord's consent to your use of the Marks and signage which we initially prescribe for the FAT SHACK Restaurant;
- (iii) We must have the right to enter the premises to make any modification necessary to protect the Marks and the Licensed Methods;
- (iv) We or our designee, without the landlord's approval, must have the option to assume your occupancy rights under the existing lease terms and have the right to assign the lease or sublet the premises, for all or any part of the lease term, if you are in default under the lease or the Franchise Agreement or if the lease or Franchise Agreement is terminated;
- (v) Your landlord must agree to provide us with a notice of default and an opportunity to cure any default; and
- (vi) The lease must contain a use provision which is acceptable to us, including the requirement that only a FAT SHACK Restaurant may be operated on the premises without our prior written consent.
Your lease is then conditionally assigned to us as security for your timely performance of all obligations under the Franchise Agreement. You are responsible for obtaining the landlord's consent to the conditional assignment.
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, the primary lease for a Fat Shack Restaurant must include specific provisions that grant certain rights to Fat Shack as the franchisor. One of these provisions is that the lease must give the landlord's consent to the franchisee's use of Fat Shack's marks and signage, as initially prescribed by Fat Shack for the restaurant. This requirement ensures that Fat Shack maintains control over its branding and that the landlord is aware of and approves the use of Fat Shack's trademarks and signage on the premises.
This provision is important for prospective Fat Shack franchisees because it means they need to ensure that the lease agreement they negotiate with the landlord includes this consent. Failure to do so could result in a lease that does not meet Fat Shack's requirements, potentially delaying or preventing the opening of the franchise. The franchisee is responsible for obtaining the landlord's consent to the conditional assignment of the lease to Fat Shack.
Additionally, Fat Shack retains the right to enter the premises to make any modifications necessary to protect its marks and licensed methods. The lease must also include a use provision acceptable to Fat Shack, stipulating that only a Fat Shack Restaurant may operate on the premises without Fat Shack's prior written consent. These requirements collectively ensure that the Fat Shack brand is protected and consistently presented across all franchise locations.