Does the non-competition covenant for Fat Shack extend to members of the associate's immediate family?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Associate covenants and agrees that, during the term of his or her Affiliation, except while conducting Company's business in a manner authorized by FSI and Company, Associate shall not, either directly or indirectly through any member of Associate's immediate family, separate business entity or otherwise:
- a. have any direct or indirect interest as a disclosed or beneficial owner in a "Competitive Business," as defined below;
- b. perform services as a director, officer, manager, employee, consultant, representative, agent or otherwise for a Competitive Business;
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the non-competition covenant does extend to members of the associate's immediate family. During the term of the agreement, the associate is restricted from having a direct or indirect interest in a competitive business, or performing services for one, either directly or through any member of their immediate family.
After the termination or expiration of the agreement, this restriction continues for a period of two years. During this time, neither the associate nor any member of their immediate family can have any direct or indirect interest in a Competitive Business within a 10-mile radius of the Fat Shack Restaurant location or any other Fat Shack Restaurant.
This means that not only is the associate bound by the non-compete, but their immediate family members are as well. If the associate or a family member breaches this covenant, the two-year period restarts from the date the activity ceases or is legally stopped, whichever occurs later.