Who is responsible for understanding and complying with applicable laws and regulations for a Fat Shack franchise?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will conduct itself and operate its FAT SHACK Restaurant in compliance with all applicable laws, regulations and other ordinances and in such a manner so as to promote a good public image in the business community, including, if Franchisee offers alcohol beverages at its FAT SHACK Restaurant, all applicable liquor licensing laws, regulations and ordinances and dram shop laws. In connection therewith, Franchisee will be solely and fully responsible for obtaining any and all licenses to operate the FAT SHACK Restaurant. Franchisee shall keep copies of all health department, fire department, building department and other similar reports of inspections by governmental authorities on file and available for inspection by FSI. Franchisee shall immediately forward to FSI any such reports or inspections in which Franchisee has been found not in compliance with the underlying regulation. Franchisee shall also promptly notify FSI in writing of any notices of default or non-compliance under its lease or any other third-party contracts related to the operation of the FAT SHACK Restaurant, by sending copies of all such notices to FSI. FSI has no obligation to advise Franchisee of any legislative or other legal developments that may affect its FAT SHACK Restaurant. Franchisee is solely responsible for inquiring about and becoming familiar with all applicable laws, ordinances, and regulations, and determining those actions required for compliance. Any information FSI provides to Franchisee regarding applicable laws, ordinances, or regulations does not relieve Franchisee of its responsibility to consult with its own legal advisor and otherwise take appropriate action to inquire about and comply with applicable laws, ordinances, and regulations.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the franchisee is solely responsible for understanding and complying with all applicable laws and regulations pertaining to the operation of their Fat Shack restaurant. This includes, but is not limited to, compliance with all applicable laws, regulations, and other ordinances, maintaining a good public image, and adhering to liquor licensing laws if alcohol is served.
The franchisee is also responsible for obtaining all necessary permits and licenses required for the lawful construction and operation of the Fat Shack restaurant. These permits and licenses include zoning, access, sign, health, liquor (if applicable), fire and safety requirements, building and other required construction permits, licenses to do business and fictitious name registrations, sales tax permits, health and sanitation permits and ratings, and fire clearances. The franchisee must also ensure compliance with the Americans with Disabilities Act and all other applicable laws, rules, codes, regulations, or ordinances.
Fat Shack Inc. has no obligation to advise the franchisee of any legislative or other legal developments that may affect their Fat Shack Restaurant. While Fat Shack may provide information regarding applicable laws, ordinances, or regulations, this does not relieve the franchisee of their responsibility to consult with their own legal advisor and take appropriate action to ensure compliance. The franchisee must keep copies of all inspection reports from governmental authorities on file and immediately forward any reports of non-compliance to Fat Shack.