What pricing requirement is unlawful for Fat Shack franchisees under Washington law?

According to Fat Shack's 2025 Franchise Disclosure Document, Fat Shack may periodically set maximum or minimum prices for products and services offered at the franchisee's Fat Shack restaurant, unless prohibited by applicable law. If Fat Shack establishes a maximum price, the franchisee cannot sell those items at a higher price. This pricing requirement might be unlawful for Fat Shack franchisees in Washington.

This means that while Fat Shack generally has the right to set price limits, this right is subject to state laws. In some states, including Washington, laws prevent franchisors from setting or controlling the prices at which franchisees sell their products or services. This aims to promote competition and prevent price fixing.

For a prospective Fat Shack franchisee in Washington, this is a crucial point. It means that Fat Shack may attempt to set maximum or minimum prices, but Washington law might protect the franchisee's right to set their own prices. It is important for potential franchisees to consult with a legal expert to understand their rights under Washington law and how it affects their franchise agreement with Fat Shack. This ensures they are aware of their pricing autonomy and can operate their business in compliance with local regulations.