What pricing requirements are unlawful for Fat Shack franchisees in Washington?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless prohibited by applicable law, FSI may periodically set a maximum or minimum price that Franchisee may advertise and charge for products and services offered by its FAT SHACK Restaurant.
If FSI establishes a maximum price for any products or services, Franchisee shall not offer or sell those products or services at any greater price.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, Fat Shack may periodically set maximum or minimum prices that a franchisee can advertise and charge for products and services, unless prohibited by applicable law. If Fat Shack establishes a maximum price, the franchisee cannot sell those items at a higher price.
For a Fat Shack franchisee in Washington, this means that any state or local law that prohibits franchisors from setting maximum or minimum prices would override Fat Shack's standard policy. In such a case, the franchisee would have the right to set their own prices, irrespective of any pricing guidelines issued by Fat Shack.
This clause protects franchisees from potentially restrictive pricing policies set by Fat Shack, ensuring compliance with local laws that may promote pricing autonomy. Franchisees should be aware of the specific pricing laws in their area and consult with a legal professional to understand their rights and obligations.