What is the notice period required for a Fat Shack franchisee to terminate the Development Agreement?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise or | Summary | |
|---|---|---|---|
| Other Agreement | |||
| d. Termination by you | Section 19.1 of FA; Section 4.2 of DA | For the Franchise Agreement: On written notice if you notify us within 30 days of the breach and we materially fail to comply and fail to cure within 60 days after notice or such additional time reasonably needed to cure (subject to applicable state law). For the Development Agreement: On 60 days’ written notice by you for any reason (subject to applicable state law). |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 43–46)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, a franchisee can terminate the Development Agreement with a 60-day written notice for any reason, although this is subject to applicable state law. This means that a Fat Shack franchisee has the right to end the Development Agreement, regardless of cause, by providing Fat Shack with a written notification at least 60 days in advance of the intended termination date.
This termination provision offers the franchisee a degree of flexibility, allowing them to exit the Development Agreement if their circumstances change or if they decide that developing further Fat Shack locations is not in their best interest. The franchisee should be aware of any state laws that may affect their ability to terminate the agreement.
It is important to note that while the franchisee can terminate the Development Agreement with 60 days' notice, the Franchise Agreement has different termination conditions. For the Franchise Agreement, termination by the franchisee requires written notice within 30 days of a breach by Fat Shack, and Fat Shack must materially fail to comply and fail to cure the breach within 60 days after the notice. This difference highlights the importance of understanding the specific terms and conditions of each agreement within the Fat Shack franchise system.