Does Fat Shack retain the exclusive right to develop and control the content of all Electronic Advertising for Fat Shack Restaurants?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall not develop, create, distribute, disseminate or use any Internet advertising or website, or any multimedia, social media, telecommunication, mass electronic mail or audio/visual advertising, promotional or marketing materials ("Electronic Advertising"), without FSI's prior written consent, which consent may be withheld in FSI's sole discretion. FSI shall retain the exclusive right to develop and control the content of all Electronic Advertising for the FAT SHACK Restaurants. Franchisee acknowledges that FSI shall own all Electronic Advertising related to the Marks and Licensed Methods. FSI reserves the right, upon 30 days' prior written notice, to require Franchisee, to create, customize or provide access to any websites, telecommunications, audio/visual advertising, promotional or marketing material as part of the Electronic Advertising. If FSI permits or requires Franchisee to develop any Electronic Advertising, Franchisee shall do so in compliance with FSI's policies and rules regarding the creation, maintenance, use and content of such Electronic Advertising as set forth in this Agreement, the Operations Manual or Electronic Advertising code of conduct that FSI may develop, disseminate and modify from time to time. Any amounts that Franchisee spends to participate in Electronic Advertising shall be credited toward Franchisee's local advertising obligations.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to the 2025 Fat Shack Franchise Disclosure Document, Fat Shack retains the exclusive right to develop and control the content of all Electronic Advertising for Fat Shack Restaurants. The FDD specifies that franchisees cannot develop, create, distribute, disseminate, or use any Electronic Advertising without Fat Shack's prior written consent, which Fat Shack can withhold at its sole discretion. Electronic Advertising includes Internet advertising, websites, multimedia, social media, telecommunications, mass electronic mail, or audio/visual advertising, promotional, or marketing materials.
Fat Shack also owns all Electronic Advertising related to its Marks and Licensed Methods. However, Fat Shack reserves the right to require franchisees, with 30 days' prior written notice, to create, customize, or provide access to websites, telecommunications, or audio/visual advertising as part of the Electronic Advertising. If Fat Shack permits or requires a franchisee to develop any Electronic Advertising, the franchisee must comply with Fat Shack's policies and rules regarding the creation, maintenance, use, and content of such advertising, as outlined in the Franchise Agreement, Operations Manual, or Electronic Advertising code of conduct.
Any amounts that a franchisee spends to participate in Electronic Advertising will be credited toward the franchisee's local advertising obligations. This means that while Fat Shack maintains control over electronic advertising content, franchisees may have opportunities to contribute to and benefit from these campaigns, with their spending potentially offsetting local advertising requirements. This setup ensures brand consistency while allowing for some level of franchisee involvement in electronic advertising efforts.