What rights and obligations does the Assignee assume on the Effective Date of the Fat Shack lease assignment?

According to Fat Shack's 2025 Franchise Disclosure Document, as of the Effective Date of the lease assignment, the Assignee (FAT SHACK INC.) assumes all the rights, duties, responsibilities, and obligations of the Assignor (the original tenant) arising on or after the Effective Date, as outlined in the terms and provisions of the lease. This means that Fat Shack, as the Assignee, steps into the shoes of the original tenant and becomes responsible for fulfilling the lease obligations from that point forward.

Prior to the Effective Date, Fat Shack has the right to receive written notice from the landlord regarding any defaults by the Assignor (original tenant). Fat Shack is granted a period of 30 days to cure such defaults, or 10 days after the period provided to the Assignor in the Lease, whichever is longer. However, Fat Shack is not obligated to cure any default unless it elects to assume the lease. If Fat Shack does cure a default, the Assignor is required to promptly reimburse Fat Shack for the costs incurred, along with interest at a rate of 1.5 percent per month, or the highest rate allowed by law.

Furthermore, the landlord consents to the assignment of the lease to Fat Shack and agrees that after the Effective Date, Fat Shack can sublease or assign the lease to another Fat Shack franchisee without further consent from the landlord, provided the new franchisee will operate a Fat Shack Restaurant on the property. Fat Shack can also further assign the lease to another party acceptable to the landlord, who agrees to assume the tenant's obligations under the lease. This provides Fat Shack with flexibility in managing the lease and the restaurant operations at the location.