How must the Fat Shack Restaurant Location be defined in the Franchise Agreement?

According to Fat Shack's 2025 Franchise Disclosure Document, the Restaurant Location must be defined as a specific numbered street or mall address. The Franchise Agreement stipulates that the Restaurant Location cannot be defined as a geographic area or described in any terms other than a specific numbered street or mall address. This ensures clarity and precision in defining the physical location of the Fat Shack restaurant.

Initially, the Franchise Agreement's Addendum (Exhibit I) will specify either the Restaurant Location or a nonexclusive Target Area. If only a Target Area is specified, the franchisee must select a site within that area and propose it to Fat Shack Inc. (FSI) for approval. Upon approval, both parties will execute the Restaurant Location Supplement to Franchise Agreement (Exhibit II) to formally document the agreed-upon location.

This requirement has important implications for prospective franchisees. It prevents any ambiguity regarding the restaurant's location and ensures that both the franchisee and Fat Shack are in agreement about the specific site. This also impacts the Protected Territory, which is defined as a three-mile radius around the Restaurant Location. Franchisees should carefully consider the specific address and its surroundings, as this will directly affect their Protected Territory and potential customer base. Furthermore, franchisees are prohibited from using the Restaurant Location for any purpose other than operating a Fat Shack Restaurant, both during and after the term of the Franchise Agreement.