What is the name of the document signed upon Fat Shack's approval of the Restaurant Location?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
If, as of the date you sign your Franchise Agreement, you do not have the Restaurant Location chosen and approved by us, we will designate, by Addendum to the Franchise Agreement, a "Target Area" within which to find a Restaurant Location. The designation of the Target Area does not in any manner grant you any continuing territorial rights in or to the Target Area. If the Addendum lists only a Target Area and not the Restaurant Location, then we and you will sign the Restaurant Location Supplement to Franchise Agreement attached as Exhibit II to the Franchise Agreement upon our later approval of the Restaurant Location.
Source: Item 12 — Territory (FDD pages 36–39)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, if a Restaurant Location is not chosen and approved by Fat Shack at the time of signing the Franchise Agreement, a "Target Area" will be designated within an addendum to the Franchise Agreement to find a Restaurant Location. Upon Fat Shack's later approval of the Restaurant Location, both Fat Shack and the franchisee will sign the Restaurant Location Supplement to Franchise Agreement. This supplement is attached as Exhibit II to the Franchise Agreement.
This process ensures that Fat Shack maintains control over where its franchises are located, as the viability and demographics of the location are key factors in their approval process. The use of a Target Area and subsequent Restaurant Location Supplement allows for flexibility in the initial agreement while still ensuring that the final location meets Fat Shack's standards.
For a prospective franchisee, this means that the initial Franchise Agreement might not specify the exact location. Instead, it might outline a general area where the franchisee is expected to find a suitable site. The franchisee should carefully review Exhibit II, the Restaurant Location Supplement to Franchise Agreement, to understand the obligations and conditions related to the final approved location. It is important to note that the designation of a Target Area does not grant any territorial rights to the franchisee.