Does Fat Shack have the right to establish further standards for relocation of a Fat Shack restaurant?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
You must obtain our prior written approval to relocate your Restaurant Location. We will generally approve the relocation of your FAT SHACK Restaurant if the new Restaurant Location is within your Protected Territory (described below) and meets our standards for your initial Restaurant Location, although we reserve the right to establish further standards.
Source: Item 12 — Territory (FDD pages 36–39)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, franchisees must obtain prior written approval from Fat Shack to relocate their restaurant. While Fat Shack will generally approve a relocation if the new location is within the franchisee's protected territory and meets the standards for an initial restaurant location, Fat Shack retains the right to establish further standards for relocation.
This means that even if a franchisee finds a new location within their protected territory that seems suitable, Fat Shack can impose additional requirements that the franchisee must meet before the relocation is approved. These additional standards are not defined in the FDD, giving Fat Shack considerable discretion in the relocation process.
For a prospective franchisee, this implies a degree of uncertainty and potential added expense when considering relocation. It would be prudent to discuss with Fat Shack what these 'further standards' might entail and under what circumstances they would be applied. Understanding these potential requirements upfront can help a franchisee better assess the feasibility and costs associated with relocating their Fat Shack restaurant in the future.