What post-termination covenants must a Fat Shack franchisee abide by during a transfer?

According to Fat Shack's 2025 Franchise Disclosure Document, a franchisee who transfers their franchise must abide by all post-termination covenants, including the covenant not to compete as outlined in Section 21.2 of the franchise agreement.

This means that even when a Fat Shack franchisee sells or transfers their business to a new owner, they are still bound by the restrictions that prevent them from engaging in competitive activities after the franchise agreement ends. The specific terms of the non-compete agreement are detailed in Section 21.2, which is not included in the provided documentation.

Prospective franchisees should carefully review Section 21.2 of the Fat Shack franchise agreement to fully understand the scope and duration of the post-termination non-compete obligations. Understanding these restrictions is crucial, as they can significantly impact a franchisee's future business opportunities after transferring their Fat Shack franchise.