What is the section number of the Agreement that discusses Commencement of Operations for Fat Shack?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
6.9. Commencement of Operations
Unless otherwise agreed in writing by FSI and Franchisee, Franchisee has 12 months from the date of this Agreement (which may be extended for up to a total of $1\frac{1}{2}$ years as provided in Section 6.4) within which to complete the initial training program, described in Section 7.1, and commence operation of the FAT SHACK Restaurant. Franchisee shall obtain the written consent of FSI prior to commencing operation of the FAT SHACK Restaurant, which cannot be granted until FSI has approved the Restaurant Location and the lease, and Franchisee has: (1) successfully completed the initial training program; (2) paid all fees and other amounts due to FSI; (3) furnished FSI with copies of all insurance policies required by this Agreement; (4) built-out and equipped the Restaurant Location in accordance with FSI's standards
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, Section 6.9 of the agreement outlines the commencement of operations. It states that unless otherwise agreed upon in writing by both Fat Shack and the franchisee, the franchisee has 12 months from the date of the agreement to complete the initial training program and begin operating the Fat Shack restaurant. This period may be extended up to a total of 1 1/2 years as detailed in Section 6.4.
Before starting operations, the franchisee must obtain written consent from Fat Shack, which is contingent upon several conditions. These conditions include Fat Shack's approval of the restaurant location and lease, successful completion of the initial training program, payment of all due fees and amounts to Fat Shack, and providing copies of all required insurance policies. Additionally, the franchisee must ensure the restaurant is built out and equipped according to Fat Shack's standards.
This section is important for prospective franchisees as it clearly defines the timeline and prerequisites for opening their Fat Shack restaurant. Franchisees need to be aware of the deadlines for completing training and securing necessary approvals, as well as the financial obligations and operational standards they must meet. Failing to meet these requirements could delay the opening of their restaurant and potentially impact their investment.