What is the purpose of the 'PURP' section in the Fat Shack franchise agreement?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
FAT SHACK INC. FRANCHISE AGREEMENT
THIS AGREEMENT (the "Agreement") is made as of the effective date set forth above between FAT SHACK INC., a Delaware corporation, located at 420 East 58th Avenue, Suite 128B, Denver, Colorado 80216 ("FSI") and the undersigned franchisee ("Franchisee"), who, on the basis of the following understanding, and in consideration of the following promises, agree as follows:
1. PURPOSE
- 1.1. FSI has developed methods for establishing, operating and promoting quick service sandwich restaurants under the name FAT SHACK® that features "Fat Sandwiches," burgers and wings, together with appetizers, desserts and hot and cold beverages, and related merchandise, for dine in, takeout and delivery, and specializes in late night delivery of its products to its customers ("FAT SHACK Restaurants" or "Restaurant") associated with the service mark "FAT SHACK". FSI licenses its franchisees to use certain valuable trade names, service marks and trademarks, including the service marks "FAT SHACK" and "LATE NIGHT DONE RIGHT" (collectively, the "Marks"), and FSI's distinctive techniques, expertise and knowledge in the establishment, operation and promotion of FAT SHACK Restaurants and related licensed methods of doing business (collectively the "Licensed Methods").
- 1.2. FSI grants the right to others to establish and operate FAT SHACK Restaurants, under the Marks and pursuant to the Licensed Methods.
- 1.3. Franchisee recognizes and acknowledges the benefits to be derived from being identified and associated with FSI and being able to utilize the Licensed Methods, and therefore desires to establish a FAT SHACK Restaurant at an approved location. FSI is willing to grant Franchisee the right to operate a FAT SHACK Restaurant under the terms and conditions contained in this Agreement.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, Section 1 of the franchise agreement outlines the purpose of the agreement. Fat Shack has developed methods for operating quick-service sandwich restaurants featuring items like "Fat Sandwiches," burgers, wings, appetizers, desserts, and beverages, specializing in late-night delivery. They license franchisees to use their trade names, service marks such as "FAT SHACK" and "LATE NIGHT DONE RIGHT", distinctive techniques, expertise, and knowledge in establishing, operating, and promoting Fat Shack Restaurants. These elements are collectively referred to as the "Licensed Methods".
Fat Shack grants the right to others to establish and operate Fat Shack Restaurants using the Marks and Licensed Methods. The franchisee recognizes the benefits of being associated with Fat Shack and utilizing the Licensed Methods. Therefore, the franchisee desires to establish a Fat Shack Restaurant at an approved location, and Fat Shack is willing to grant the franchisee the right to operate under the terms and conditions of the agreement.
In essence, the purpose of the Fat Shack franchise agreement is to allow the franchisee to operate a Fat Shack restaurant using Fat Shack's established brand, methods, and trademarks, while also ensuring that the franchisee adheres to the standards and procedures set by Fat Shack. This arrangement benefits both parties by allowing Fat Shack to expand its brand and the franchisee to operate a business with an established reputation and system.