Is it recommended that Fat Shack franchisees have their own attorney review the lease?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Our review and approval of your lease, or, if applicable, purchase agreement, is conducted solely for the purpose of determining that it meets our minimum criteria for the operation of a FAT SHACK Restaurant and that our interests and those of our affiliates are protected. The legal counsel and any other professional advisors we engage to assist with the review will be acting only on our behalf and will not be representing you or your interests in relation to the review and approval. We recommend that you have your own attorney review the lease on your behalf.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 28–36)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, it is recommended that franchisees have their own attorney review the lease. While Fat Shack may assist in negotiating the lease to ensure it meets their minimum requirements, they have no obligation to do so. Fat Shack's review and approval of the lease is solely for the purpose of protecting their interests and ensuring the location meets their operational criteria.
Fat Shack's legal counsel and professional advisors are engaged to assist with the review on behalf of Fat Shack, and will not represent the franchisee's interests. Therefore, it is important for prospective franchisees to seek independent legal advice to ensure that the lease terms are favorable and protect their own interests.
Having an attorney review the lease can help franchisees understand their obligations, rights, and potential liabilities under the lease agreement. This can prevent misunderstandings or disputes with the landlord in the future and ensure that the franchisee is making an informed decision. This is a common practice in franchising, as lease agreements can be complex and have significant financial and legal implications for the franchisee.
Ultimately, while Fat Shack offers assistance in the lease negotiation process, the responsibility for ensuring the lease is in the franchisee's best interest falls on the franchisee. Engaging an attorney to review the lease is a recommended step to protect the franchisee's investment and ensure a clear understanding of the lease terms.