What does Fat Shack recommend a franchisee do regarding the Restaurant Location and lease or purchase agreement?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
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Franchisee may only operate a FAT SHACK Restaurant at a site approved by FSI, which approval will not be unreasonably withheld so long as the site meets FSI's site selection criteria. Franchisee shall follow FSI's site selection procedures in locating a Restaurant Location for the FAT SHACK Restaurant. Franchisee shall submit a completed site submittal package, including demographics and other materials requested by FSI, containing all information required by FSI to assess a proposed Restaurant Location. Franchisee acknowledges and warrants that (1) FSI's approval does not constitute a guarantee, recommendation or endorsement of the Restaurant Location or Target Area and that the success of the FAT SHACK Restaurant to be operated at a Restaurant Location is dependent upon Franchisee's abilities as an independent businessperson; and, (2) when a Restaurant Location is approved by FSI, then FSI has complied with its obligations under the Agreement to assist Franchisee by provision of criteria for the Restaurant Location and determining fulfillment of the requisite criteria for the Restaurant Location, such determination based on information provided by Franchisee.
6.2. Lease Approval and Architectural Drawings
Once the Restaurant Location has been approved by FSI, Franchisee's proposed Restaurant Location lease or purchase agreement must be reviewed and certified acceptable by FSI. After FSI has approved the proposed lease or purchase agreement, FSI and Franchisee will mutually develop the layout of the Restaurant Location, or Franchisee may employ the services of an architecture to create a set of architectural drawings for the Restaurant Location, which will be subject to FSI's approval. Franchisee may not sign a lease or use architectural drawings that have not been approved by FSI. FSI's approval of a lease and architectural drawings indicates only that the lease and drawings meet FSI's minimum criteria for the operation of a FAT SHACK Restaurant and that the interests of FSI and its affiliates are protected. FSI and any legal counsel, architectural advisors, or other professional advisors reviewing the lease or purchase agreement and providing or reviewing the architectural drawings will be acting only behalf of FSI. Franchisee acknowledges that FSI's review of the lease or purchase agreement and delivery of architectural drawings does not constitute: (i) a guaranty of the Restaurant Location's suitability for a FAT SHACK Restaurant; (ii) a guaranty that the FAT SHACK business established at the Restaurant Location will be successful;
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, a franchisee may only operate a Fat Shack restaurant at a site approved by Fat Shack, and this approval will not be unreasonably withheld if the site meets Fat Shack's criteria. The franchisee is responsible for following Fat Shack's site selection procedures to find a location and must submit a completed site submittal package with all required information for assessment. Fat Shack's approval does not guarantee the location's success; it only means Fat Shack has fulfilled its obligation to provide location criteria and determine if the criteria are met based on the information provided by the franchisee.
Once a location is approved, the franchisee's proposed lease or purchase agreement must be reviewed and certified as acceptable by Fat Shack. After Fat Shack approves the lease or purchase agreement, Fat Shack and the franchisee will develop the restaurant layout together. Alternatively, the franchisee can hire an architect to create drawings, which are also subject to Fat Shack's approval. The franchisee cannot sign a lease or use architectural drawings that Fat Shack has not approved.
It is the franchisee's sole responsibility to ensure the restaurant location complies with all local ordinances, building codes, and zoning regulations. Fat Shack's review of the lease and architectural drawings only indicates that they meet Fat Shack's minimum criteria and protect Fat Shack's interests. The review does not guarantee the location's suitability or the business's success, nor does it assure that the lease terms are the most favorable available. Fat Shack also strongly recommends that the franchisee consult with an independent professional advisor, such as an attorney or accountant, before signing any binding documents or paying any sums.