What is the legal significance of Fat Shack irrevocably appointing officers of the states?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee authorizes FSI, and hereby appoints FSI and any of its officers as Franchisee's attorney-in-fact, to direct the telephone company and all telephone directory publishers, domain name registration companies, and social media website operators to transfer any telephone, telecopy or facsimile machine numbers, directory listings, domain names, and social media websites and accounts relating to the FAT SHACK Restaurant to FSI or its designee, should Franchisee fail or refuse to do so, and the telephone company and all telephone directory publishers, domain name registration companies, and social media website operators may accept such direction or this Agreement as conclusive evidence of FSI's exclusive rights in such telephone numbers, directory listings, domain names, and social media websites and accounts, and FSI's authority to direct their transfer.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the franchisee authorizes Fat Shack Inc. (FSI) to act as their attorney-in-fact. This authorization allows FSI and its officers to direct telephone companies, directory publishers, domain name registrars, and social media operators to transfer any phone numbers, directory listings, domain names, and social media accounts related to the Fat Shack restaurant to FSI or its designee.
This appointment as attorney-in-fact is triggered if the franchisee fails or refuses to make these transfers themselves. The agreement states that these third parties may accept FSI's direction or the franchise agreement itself as conclusive evidence of FSI's rights and authority to direct the transfer.
For a prospective Fat Shack franchisee, this means that upon termination or failure to comply, Fat Shack has the legal right to take control of all online and telecommunication assets associated with the franchise. This is a significant measure to protect Fat Shack's brand and online presence, ensuring a consistent brand identity and preventing a former franchisee from using these assets to compete or otherwise harm the brand's reputation.