Does Fat Shack's review of the lease or purchase agreement for a Fat Shack franchise guarantee the Restaurant Location's suitability?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that FSI's review of the lease or purchase agreement and delivery of architectural drawings does not constitute: (i) a guaranty of the Restaurant Location's suitability for a FAT SHACK Restaurant; (ii) a guaranty that the FAT SHACK business established at the Restaurant Location will be successful; (iii) any assurance that the business terms of the lease or purchase agreement, including the rent or purchase price, are the most favorable terms available in the market surrounding the Restaurant Location; (iv) any representation that the lease or purchase agreement is entirely consistent with the terms of any signed letter of intent; (v) a representation that FSI would sign the lease or purchase agreement for its own account; or (vi) any other guaranty or assurance of any kind.
It is Franchisee's sole responsibility to ensure that the Restaurant Location complies with all applicable local ordinances, building codes and zoning regulations.
Notwithstanding Franchisee's obligation to pay the Lease Review Fee, defined in Section 6.3 below, Franchisee acknowledges that neither FSI nor its legal counsel, architectural advisors, or other professional advisors are representing Franchisee or Franchisee's interests in relation to their review and certification of the lease or purchase agreement or in relation to the architectural drawings.
Franchisee is not a third party beneficiary of such review and certification.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, Fat Shack's review of a lease or purchase agreement for a franchise location does not guarantee the location's suitability. While Fat Shack does review and approve the proposed lease or purchase agreement and may assist in developing the restaurant layout, this approval only indicates that the lease and architectural drawings meet Fat Shack's minimum criteria for operation and protect the interests of Fat Shack and its affiliates.
Specifically, the FDD states that Fat Shack's review does not constitute a guarantee that the location is suitable for a Fat Shack restaurant or that the business will be successful at that location. It also does not assure that the lease terms, including rent or purchase price, are the most favorable available, nor does it represent that the lease agreement aligns with any signed letter of intent. Fat Shack is not obligated to sign the lease or purchase agreement for its own account, and there are no other guarantees or assurances of any kind provided.
The franchisee bears the sole responsibility for ensuring the restaurant location complies with all local ordinances, building codes, and zoning regulations. Furthermore, the franchisee acknowledges that Fat Shack, including its legal counsel and advisors, is not representing the franchisee's interests during the review and certification of the lease or purchase agreement. The franchisee is not considered a third-party beneficiary of this review and certification. This means that the franchisee must conduct their own due diligence to ensure the location is appropriate for their Fat Shack business.