What are the required actions for both Fat Shack Inc. (FSI) and the franchisee to execute the Addendum?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
This is a Supplement ("Supplement") to the Franchise Agreement (the "Agreement") by and between FAT SHACK INC., hereinafter "FSI," and the undersigned franchisee, hereinafter "Franchisee." In the Addendum to the Agreement, FSI and Franchisee did not designate a specific address for Franchisee's Restaurant Location. FSI and Franchisee specified a nonexclusive Target Area and agreed that a specific address for the Restaurant Location within that Target Area would be subsequently agreed upon between FSI and Franchisee. FSI and Franchisee have now reached an agreement as to the Restaurant Location. They desire to execute this Supplement to update the Agreement by memorializing the Restaurant Location agreed upon.
1.8. ••• • J•• 1.0. 1.0. 1.0 2.0 2.0 a agreed upon It is therefore agreed that the Restaurant Lo and Paragraph 1 of the Addendum, shall be: ocation, referenced in Section 3.1 of the Agreement the Addendum. In all other respects, the Agreen confirmed, and shall remain in full force and effect Supplement that are not defined herein shall have the in their original form. All capitalized terms in this FAT SHACK INC. Title:
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the Addendum to the Franchise Agreement is executed when a specific restaurant location is agreed upon by both Fat Shack Inc. (FSI) and the franchisee. Initially, the franchisee and FSI specify a nonexclusive Target Area, with the understanding that a specific address for the Restaurant Location within that Target Area will be determined later. The execution of the Restaurant Location Supplement to the Franchise Agreement serves to update the agreement by formally documenting the agreed-upon Restaurant Location.
To complete the Addendum, both FSI and the franchisee must reach an agreement regarding the restaurant's location. Once this agreement is reached, they execute the Restaurant Location Supplement, which memorializes the agreed-upon location. This supplement references Section 3.1 of the Agreement and the Addendum itself, ensuring that the new location is properly integrated into the existing franchise agreement.
In essence, the process involves a mutual agreement on the restaurant location, followed by the formal execution of the Restaurant Location Supplement to update the Franchise Agreement. This ensures that both parties are aligned on the specific location and that the agreement accurately reflects this understanding.