How long does a Fat Shack franchisee have to cure a default after receiving written notice?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
FSI shall have the right to terminate this Agreement (subject to any state laws to the contrary, where state law shall prevail), effective upon 30 days written notice to Franchisee, if Franchisee breaches any other provision of this Agreement and fails to cure such breach within the 30-day period. Neither Section 19.2 nor this Section 19.3 shall be deemed to extend the cure period provided in any material agreement for the FAT SHACK Restaurant or any other agreement between FSI and Franchisee. So long as financing from the United States Small Business Administration remains outstanding, Franchisee will be given the same opportunity to cure defaults under any agreement between FSI or its affiliates and Franchisee, as Franchisee is given under this Agreement. Notwithstanding the foregoing, if the breach is curable, but is of a nature which cannot be reasonably cured within the applicable cure period and Franchisee has commenced and is continuing to make good faith efforts to cure the breach during such period, Franchisee shall be given an additional reasonable period of time to cure the same, and this Agreement shall not terminate.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the standard cure period for a franchisee to remedy a breach of the Franchise Agreement is 30 days after receiving written notice from Fat Shack, subject to state laws. However, this 30-day cure period does not extend the cure period provided in any material agreement for the Fat Shack Restaurant or any other agreement between Fat Shack and the franchisee. If financing from the United States Small Business Administration is outstanding, the franchisee will be given the same opportunity to cure defaults under any agreement between Fat Shack or its affiliates and the franchisee, as the franchisee is given under the Franchise Agreement.
If the breach is curable but cannot be reasonably cured within the initial cure period, and the franchisee is making good faith efforts to cure the breach, Fat Shack will grant an additional reasonable period to complete the cure. There are some instances where Fat Shack can terminate the agreement without providing an opportunity to cure, such as unauthorized disclosure of trade secrets, unauthorized opening of the restaurant, or fraud affecting Fat Shack's marks.
There are also specific instances where the cure period is shorter. For example, if a Fat Shack franchisee fails to file reports of its Gross Sales within 10 days after receiving notice that such reports are overdue, or if the franchisee misuses Fat Shack's marks and fails to correct the misuse within 10 days after notification from Fat Shack, this can be grounds for termination. If the franchisee receives three notices of material default from Fat Shack within a 12-month period, regardless of whether the defaults were cured, this can also be grounds for termination.