How soon after changing banks must a Fat Shack franchisee advise FSI?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
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Franchisee shall at all times during the term of this Agreement own and control the FAT SHACK Restaurant authorized hereunder.
Upon request of FSI, Franchisee shall promptly provide satisfactory proof of such ownership to FSI.
Franchisee represents that the Statement of Ownership, attached hereto as Exhibit IV, is true, complete, accurate and not misleading.
Franchisee shall promptly provide FSI with a written notification if the information contained in the Statement of Ownership changes at any time during the term of this Agreement and shall comply with the applicable transfer provisions contained in Article 17.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
The 2025 Fat Shack Franchise Disclosure Document states that franchisees must promptly provide Fat Shack with written notification if the information contained in the Statement of Ownership changes at any time during the term of the agreement.
While the FDD requires prompt notification to Fat Shack regarding changes to the Statement of Ownership, it does not specifically define what constitutes "promptly." The FDD also does not explicitly state that a change in banks necessitates an update to the Statement of Ownership.
Therefore, prospective Fat Shack franchisees should seek clarification from the franchisor regarding whether a change in banking institutions requires an update to the Statement of Ownership and what timeframe is considered "prompt" for providing such notification.