What is the process described in the Fat Shack FDD for the guarantor appearing in person?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
All notices required to be given under this Agreement will be given in writing, by personal delivery, certified mail, return receipt requested, e-mail or an overnight delivery service providing documentation of receipt, at the physical address set forth in the first paragraph of this Agreement in the case of FSI, at the physical address set forth below Franchisee's signature to this Agreement or at the Restaurant Location set forth in the Addendum (after the Franchisees FAT SHACK Restaurant has first opened for business) in the case of Franchisee, at the e-mail address for either party set forth below each party's signature to this Agreement, or at such other addresses as FSI or Franchisee may designate in writing from time to time. Notice will be effectively given when personally delivered or delivered by e-mail to the proper e-mail address, three days after being deposited in the United States mail, with proper address and postage prepaid, and one day after being deposited with the overnight delivery service, as may be applicable.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
The 2025 Fat Shack Franchise Disclosure Document (FDD) outlines the obligations of a guarantor but does not explicitly detail a process for the guarantor to appear in person. However, the FDD does state that all notices required under the agreement will be given in writing, by personal delivery, certified mail, return receipt requested, e-mail or an overnight delivery service providing documentation of receipt. This suggests that while in-person appearances aren't mandated, personal delivery of notices is an acceptable method of communication.
The guaranty itself is a legally binding agreement where the guarantor personally guarantees the franchisee's obligations to Fat Shack. This includes ensuring the franchisee punctually pays and performs all agreements and covenants outlined in the Development Agreement. The guarantor also agrees to be personally bound by and liable for any breaches of the Development Agreement.
Furthermore, the guarantor waives certain rights, including the right to require Fat Shack to first pursue action against the franchisee before seeking recourse from the guarantor. The guarantor also consents to joint and several liability, meaning Fat Shack can pursue the guarantor directly without first exhausting remedies against the franchisee. The guarantor's liability is not contingent upon Fat Shack pursuing remedies against the franchisee, nor is it affected by any amendments or modifications to the Development Agreement.
Given the absence of a specified process for in-person appearances, a prospective franchisee should seek clarification from Fat Shack regarding any circumstances that might necessitate or be beneficial for a guarantor to appear in person. Understanding the practical implications of the guaranty and the potential need for in-person interactions is crucial for both the franchisee and the guarantor.