Which section of the Fat Shack Franchise Agreement is deleted in its entirety regarding commencement of operations?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
- b. Unauthorized Opening.
If Franchisee begins operating the FAT SHACK Restaurant without having obtained FSI's prior written consent, as required in Section 6.9.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
Based on the 2025 Fat Shack Franchise Disclosure Document, Section 6.9 regarding unauthorized opening is referenced as a condition for termination by FSI (Fat Shack International). If a franchisee begins operating a Fat Shack Restaurant without obtaining prior written consent from Fat Shack, as required in Section 6.9 of the Franchise Agreement, Fat Shack has the right to terminate the agreement effective immediately upon notice.
This means that a Fat Shack franchisee must receive explicit written approval from Fat Shack before commencing operations. Failure to obtain this approval can result in immediate termination of the Franchise Agreement, potentially leading to significant financial losses for the franchisee due to investments in the restaurant setup, lease agreements, and other associated costs.
This requirement underscores the importance of adhering to Fat Shack's procedures and protocols during the pre-opening phase. Franchisees should ensure they have all necessary approvals in writing before starting operations to avoid the risk of termination. This is a stricter-than-average clause, as many franchises allow a grace period to correct oversights, but Fat Shack reserves the right to immediate termination.