For how many consecutive days can a Fat Shack franchisee cease operations before it's considered abandonment and grounds for termination?

According to Fat Shack's 2025 Franchise Disclosure Document, a franchisee can be considered to have abandoned their Fat Shack Restaurant if they cease operations for five consecutive days. This abandonment can be grounds for termination of the Franchise Agreement. However, this does not apply if the cessation of operations is due to events beyond the franchisee's control, such as a fire, flood, or earthquake, and is not related to a lack of funds.

This clause protects Fat Shack's brand and ensures that restaurants remain operational, maintaining service and revenue. For a prospective franchisee, this means they must have contingency plans for potential disruptions and maintain sufficient capital to avoid closure due to financial issues.

It is important to note the exception for events beyond the franchisee's control. This acknowledges that unforeseen circumstances can occur, and provides some leeway as long as the cause is not related to the franchisee's financial stability. The franchisee should ensure they have adequate insurance coverage to protect against such events.

This type of clause is relatively standard in franchise agreements, as franchisors need to protect their brand and ensure consistent operation across all locations. Franchisees should carefully review the conditions under which termination can occur and understand their obligations to maintain continuous operation.