What representation am I making when I sign the Statement of Prospective Franchisee for a Fat Shack franchise?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Since the prospective franchisee (also called "me," "our", "us", "we", and/or "I" in this document) and Fat Shack Inc. (also called "FSI", "you", or "your") both have an interest in making sure that no misunderstandings exist between each of us, and to verify that no violations of law might have occurred, and understanding that FSI is relying on the statements I/we make in this document, I/we advise FSI as follows:
I/we have had an opportunity to consult with an independent professional advisor, such as an attorney or accountant, prior to signing any binding documents or paying any sums, and FSI has strongly recommended that I/we obtain such independent professional advice.
I/we have also been advised by FSI to discuss my/our proposed purchase of, or investment in, a FAT SHACK Restaurant franchise with one or more existing FAT SHACK Restaurant franchisees prior to signing any binding documents or paying any sums and I/we have been supplied with a list of existing FAT SHACK Restaurant franchisees.
I/we understand that entry into any business venture necessarily involves certain risk of loss or failure, that the purchase of a FAT SHACK Restaurant franchise (or any other franchise) is a speculative investment, that investment beyond the amounts outlined in the Franchise Disclosure Document may be required to succeed, that there exists no guaranty against possible loss or failure in this or any other business and that the most important factors in the success of any FAT SHACK Restaurant, including the one to be operated by me/us, are my/our personal business, marketing, sales, management, judgment and other skills.
I understand that my/our investment in a FAT SHACK Restaurant franchise contains substantial business risks and that there is no guarantee that it will be profitable.
I/we have made my/our own independent determination that I/we have adequate working capital to develop, open and operate my/our FAT SHACK Restaurant.
I/we acknowledge that FSI or its designee will use reasonable efforts to assist me/us in locating a site for my/our FAT SHACK Restaurant, but I/we also understand that I/we remain responsible for the final decision regarding the selection of a suitable site.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to the 2025 Fat Shack Franchise Disclosure Document, the Statement of Prospective Franchisee is designed to ensure there are no misunderstandings between the prospective franchisee and Fat Shack Inc. (FSI). By signing this statement, you acknowledge that FSI is relying on the information you provide. The document aims to verify that no violations of law have occurred during the franchise sales process.
Specifically, the statement confirms that you have had the opportunity to consult with an independent professional advisor, such as an attorney or accountant, before signing any binding documents or paying any sums to Fat Shack. Fat Shack also strongly recommends that you obtain such independent professional advice. Furthermore, you are advised to discuss the proposed franchise purchase with existing Fat Shack franchisees and have been provided with a list of these franchisees.
The statement also includes an acknowledgment that entering into any business venture, including a Fat Shack franchise, involves risks of loss or failure and is a speculative investment. It confirms that there is no guarantee against possible loss or failure and that your personal business, marketing, sales, management, judgment, and other skills are the most important factors in the success of your Fat Shack Restaurant. You also confirm that you have made your own independent determination that you have adequate working capital to develop, open, and operate your Fat Shack Restaurant.
Finally, the statement acknowledges that while Fat Shack will use reasonable efforts to assist in locating a site for your Fat Shack Restaurant, you remain responsible for the final decision regarding site selection. This comprehensive statement ensures that you are fully informed about the risks and responsibilities associated with purchasing a Fat Shack franchise and that Fat Shack is relying on your representations as a prospective franchisee.