Who does the legal counsel engaged by Fat Shack represent during the lease review process?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Our review and approval of your lease, or, if applicable, purchase agreement, is conducted solely for the purpose of determining that it meets our minimum criteria for the operation of a FAT SHACK Restaurant and that our interests and those of our affiliates are protected. The legal counsel and any other professional advisors we engage to assist with the review will be acting only on our behalf and will not be representing you or your interests in relation to the review and approval. We recommend that you have your own attorney review the lease on your behalf.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 28–36)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the legal counsel and any other professional advisors engaged by Fat Shack to assist with the lease review process represent only Fat Shack and its affiliates. They do not represent the franchisee or their interests during the review and approval of the lease.
This means that while Fat Shack may offer assistance in negotiating the lease to ensure it meets their minimum criteria, the franchisee should not assume that Fat Shack's legal counsel is acting in their best interest. The review and approval of the lease by Fat Shack is solely to protect their own interests and ensure the location is suitable for a Fat Shack Restaurant.
Therefore, Fat Shack explicitly recommends that franchisees seek independent legal counsel to review the lease on their behalf. This ensures that the franchisee's interests are also protected and that they fully understand the terms and conditions of the lease agreement before signing it. This is a common practice in franchising, as the franchisor and franchisee have different interests in the lease agreement.