How is the Protected Territory measured around a Fat Shack restaurant?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to the paragraph below regarding Captive Audience Venues and Special Venues and Channels noted below, you will be granted a geographic area around your Restaurant Location (the "Protected Territory") in which we will not operate, nor permit a third party to operate, a FAT SHACK Restaurant as long as you are in substantial compliance with all the provisions of the Franchise Agreement. The Protected Territory is an area encompassing a three mile radius around the FAT SHACK Restaurant as measured from the front door of the Restaurant. A FAT SHACK Restaurant at a Captive Audience Venue does not have a Protected Territory.
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
Source: Item 12 — Territory (FDD pages 36–39)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, franchisees may be granted a protected territory. This territory is defined as a geographic area around the restaurant location where Fat Shack will not operate, nor permit a third party to operate, another Fat Shack restaurant. This protection is contingent upon the franchisee remaining in substantial compliance with all provisions of the Franchise Agreement. However, this protected territory does not apply to Captive Audience Venues. A Fat Shack restaurant at a Captive Audience Venue does not have a Protected Territory. Examples of Captive Audience Venue locations include airports and other transportation hubs, hospitals, convention centers, grocery stores, department stores, "big box" retail centers, resorts, sports arenas and stadiums, hotels and office buildings, military installations (Army and Air Force Exchange Services), and food courts.
The protected territory is measured as an area encompassing a three-mile radius around the Fat Shack restaurant. The measurement begins at the front door of the restaurant. It is important to note that Fat Shack franchisees do not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that Fat Shack owns, or from other channels of distribution or competitive brands that Fat Shack controls.
Fat Shack retains the right to market, offer, and sell products and services through various venues and channels of distribution other than franchised and company-owned Fat Shack Restaurants, including but not limited to grocery stores, wholesale distributors, coffee shops, restaurants that are not Fat Shack Restaurants, offices, hospitality and food service venues, or through retail store display, catalog sales, Internet and other electronic methods, and catering (collectively, "Special Venues and Channels") and in Fat Shack Restaurants located in captive audience venues. These Special Venues and Channels and Captive Audience Venues may be in any location, including in close proximity to your Restaurant Location or Protected Territory, and will be without any compensation to you.