Is Fat Shack obligated to assist in negotiating the lease or purchase agreement for the restaurant location?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
You must select the premises for your FAT SHACK Restaurant and sign a lease or otherwise acquire the right to use the location. We do not generally own the premises that franchisees lease for their FAT SHACK Restaurants, and instead the property is typically leased from a third party. If we approve the location, we may assist you in negotiating your lease, or, if applicable, purchase agreement, to ensure that it meets our minimum requirements, although we have no obligation to do so. If we do not approve your site, you must propose a new site. You must not, without our prior written approval, enter into any contract or letter of intent to contract to purchase or lease the premises you intend to use as a Restaurant
Location. We consider the following factors when we approve or disapprove your proposed Restaurant Location: the nature and location of other competitive FAT SHACK Restaurants and potential customers, population density, location to college campuses, traffic patterns and other factors we deem relevant on a case by case basis. There is no contractual limit on the time it takes us to approve or disapprove your proposed site and lease. Once we have all of the necessary documentation for review, we typically take 30 days to approve or disapprove your proposed Restaurant Location and lease.
We usually submit our initial lease review comments to you, or if we agree, to your landlord, within one to two weeks after receiving your lease but the entire lease negotiation process typically takes anywhere from two weeks to two months depending on the landlord's responsiveness. Our review and approval of your lease, or, if applicable, purchase agreement, is conducted solely for the purpose of determining that it meets our minimum criteria for the operation of a FAT SHACK Restaurant and that our interests and those of our affiliates are protected. The legal counsel and any other professional advisors we engage to assist with the review will be acting only on our behalf and will not be representing you or your interests in relation to the review and approval. We recommend that you have your own attorney review the lease on your behalf.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 28–36)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, franchisees are responsible for selecting the premises for their Fat Shack restaurant and securing a lease or acquiring the right to use the location. While Fat Shack does not generally own the premises, they may offer assistance in negotiating the lease or purchase agreement if they approve the location, but they are not obligated to do so. This assistance ensures that the lease meets Fat Shack's minimum requirements. If Fat Shack disapproves of the initial site, the franchisee must propose a new location.
Fat Shack considers several factors when approving or disapproving a proposed restaurant location, including the nature and location of other competitive Fat Shack restaurants, potential customers, population density, proximity to college campuses, and traffic patterns. There is no contractual limit on the time it takes Fat Shack to approve or disapprove a proposed site and lease, but they typically take 30 days once they have all the necessary documentation.
Fat Shack usually submits initial lease review comments within one to two weeks after receiving the lease, and the entire negotiation process can take from two weeks to two months, depending on the landlord's responsiveness. It is important to note that Fat Shack's review and approval of the lease or purchase agreement is solely to ensure it meets their minimum criteria and protects their interests. The legal counsel engaged by Fat Shack will be acting on their behalf and not representing the franchisee's interests. Therefore, Fat Shack recommends that franchisees have their own attorney review the lease on their behalf.