Who owns and controls the Fat Shack service mark, design, and other marks?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee hereby acknowledges that FSI has the sole right to license and control Franchisee's use of the FAT SHACK service mark, design and other of the Marks, and that such Marks shall remain under the sole and exclusive ownership and control of FSI. Franchisee acknowledges that it has not acquired any right, title or interest in the Marks except for the right to use the Marks in the operation of its FAT SHACK Restaurant as it is governed by this Agreement. Franchisee shall display the Marks prominently at the FAT SHACK Restaurant and on packaging and serving materials and in connection with forms, advertising and marketing, all in a manner as FSI shall prescribe. Franchisee further agrees that no Marks other than "FAT SHACK®," "LATE NIGHT DONE RIGHT®" or such other trademarks as may be specified by FSI shall be used in the marketing, promotion, identification or operation of the FAT SHACK Restaurant, except with FSI's prior written consent. Franchisee may not use any of the Marks, except as allowed by FSI in writing, as part of any domain name or electronic address it maintains on the Internet, the World Wide Web, or any other similar proprietary or common carrier electronic delivery system.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, Fat Shack INC. (FSI) maintains sole ownership and control over the Fat Shack service mark, design, and other marks. As a franchisee, you are granted the right to use these marks specifically for operating your Fat Shack restaurant, but only under the conditions and terms outlined in the franchise agreement.
This means that while you can display the Fat Shack marks prominently at your restaurant and in your advertising materials, you do not acquire any ownership or long-term rights to the marks themselves. Your usage is strictly limited to running your franchised business and must adhere to Fat Shack's prescribed standards. You cannot use any marks beyond "FAT SHACK®," "LATE NIGHT DONE RIGHT®," or other trademarks specified by FSI without prior written consent.
Furthermore, franchisees are restricted from using the Fat Shack marks as part of any domain name or electronic address without explicit written permission from Fat Shack INC. This ensures that the brand maintains a consistent and controlled online presence. If a franchisee notices any potential trademark infringement, they must notify FSI, who then has the sole discretion to decide on the appropriate course of action.
In the event that Fat Shack decides to modify or discontinue any of its proprietary marks, franchisees are obligated to comply with these changes at their own expense. This includes updating signage and menus, and Fat Shack is not responsible for reimbursing franchisees for these costs or any resulting loss of revenue. This underscores the importance of understanding that the brand and its associated marks are ultimately controlled by Fat Shack INC., and franchisees must adapt to any changes made by the company.