Does Fat Shack reserve the right to license proprietary software to franchisees in the future?

According to the 2025 Fat Shack Franchise Disclosure Document, Fat Shack does reserve the right to license its own proprietary software to franchisees in the future, should they develop such software. This is outlined in Item 7, which discusses the estimated initial investment for a franchisee.

Specifically, under the section detailing 'Computer, Software and Office Equipment,' it is noted that Fat Shack may choose to license proprietary software to franchisees if they develop it. Currently, franchisees are required to purchase a computerized point-of-sale system (POS) from a third-party supplier, with costs ranging from $6,000 to $12,000. Additionally, franchisees must pay between $350 and $500 per month for support and maintenance of this POS system.

The implication for prospective franchisees is that, in the future, they may be required to adopt and pay for Fat Shack's proprietary software, in addition to or in place of the existing POS system. This could involve additional costs for licensing fees, implementation, and ongoing support. Franchisees should inquire about the potential costs and benefits of any future proprietary software, as well as the circumstances under which its use would become mandatory.