Does Fat Shack have the right to enter the Restaurant Location at all times to inspect Franchisee's operations?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
FSI shall have the right to enter the Restaurant Location at all times to inspect Franchisee's operations and to require any changes to the premises of the Restaurant Location that in FSI's sole discretion are necessary to protect the Licensed Methods and Marks, including the removal of signs or other items that are not in accordance with the Licensed Methods or System. FSI shall have the right to interview customers, examine the Restaurant Location and to examine and copy Franchisee's books, records, and documents, including without limitation, the inventory, products, equipment, materials and supplies, to ensure compliance with all standards and specifications set by FSI. FSI shall conduct such inspections during regular business hours without prior notice to Franchisee. FSI also reserves the right to use third party shopping services from time to time to evaluate the operation of the FAT SHACK Restaurant, without prior notification to Franchisee.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, Fat Shack has the right to enter the restaurant location at all times to inspect the franchisee's operations. This includes the right to require changes to the premises that Fat Shack deems necessary to protect its licensed methods and marks. These changes can include the removal of signs or other items that do not comply with Fat Shack's standards.
Fat Shack's inspection rights extend to interviewing customers, examining the restaurant location, and reviewing and copying the franchisee's books, records, and documents. This encompasses inventory, products, equipment, materials, and supplies to ensure compliance with Fat Shack's standards and specifications. These inspections will be conducted during regular business hours without prior notice to the franchisee.
Additionally, Fat Shack reserves the right to use third-party shopping services to evaluate the Fat Shack restaurant's operation without prior notification to the franchisee. This allows Fat Shack to monitor the quality of service and adherence to standards from a customer's perspective.