Does Fat Shack reserve the right to designate or approve the building contractors used?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, we reserve the right to designate or approve the real estate broker you use to assist you in site selection and acquisition. We reserve the right to designate or approve the building contractors
you use. You must obtain our written consent to any improvements to the FAT SHACK Restaurant site before construction begins.
Your lease is then conditionally assigned to us as security for your timely performance of all obligations under the Franchise Agreement. You are responsible for obtaining the landlord's consent to the conditional assignment. A copy of a standard form of Conditional Assignment of Lease is attached to this Disclosure Document as Attachment D.
You must, at your expense, ensure that the FAT SHACK Restaurant is constructed, converted, designed and decorated, including installing outdoor signage, in accordance with our plans and specifications, through the assistance of contractors, architects and suppliers designated or approved by us. See also Item 7 for a discussion of related fees. We reserve the right to designate or approve the supplier of architectural drawings. If you request a change to the architectural drawings provided, we must review and approve those changes.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 22–26)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, Fat Shack retains the right to designate or approve the building contractors that franchisees use. Furthermore, franchisees must obtain written consent from Fat Shack before beginning any improvements to the Fat Shack Restaurant site.
In addition to approving building contractors, Fat Shack also requires franchisees to ensure that the Fat Shack Restaurant is constructed, converted, designed, and decorated according to Fat Shack's plans and specifications. This includes installing outdoor signage through the assistance of contractors, architects, and suppliers designated or approved by Fat Shack. Fat Shack also reserves the right to designate or approve the supplier of architectural drawings, and if a franchisee requests changes to the architectural drawings provided, Fat Shack must review and approve those changes.
These stipulations are fairly common in franchising, as they allow Fat Shack to maintain brand consistency and quality control across all franchise locations. By designating or approving contractors and suppliers, Fat Shack can ensure that the construction and design of each restaurant meet its standards. This can help protect the brand's reputation and ensure a consistent customer experience. However, it may also limit a franchisee's ability to choose contractors or suppliers based on price or personal preference.