What specific United States rider to the franchise agreement is mentioned for Fat Shack?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
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EXHIBIT VI TO FRANCHISE AGREEMENT
RIDERS TO FRANCHISE AGREEMENT FOR SPECIFIC STATES AND PROVINCES
If any one of the following Riders to the Franchise Agreement for Specific States and Provinces ("Riders") is checked as an "Applicable Rider" below, then that Rider shall be incorporated into the Franchise Agreement entered into by FAT SHACK INC. and the undersigned Franchisee. To the extent any terms of an Applicable Rider conflict with the terms of the Franchise Agreement, the terms of the Applicable Rider shall supersede the terms of the Franchise Agreement.
Applicable Rider:
| | | | 572,700 | | |---|---|---|---|---| | Cash Flows from Investing Activities | | | | | | | Dividends paid | (180,000) | (165,000) | (150,000) | | | (180,000) | (165,000) | (150,000) | | | Net Increase (Decrease) in Cash | (150,461) | (132,344) | (25,941) | | | Cash -Beginning | 189,456 | 321,800 | 347,741 | | | Cash -Ending | | $ 38,995 | $ 189,456 | $ 321,800 | Title: Title:
Date: Date:
UNITED STATES RIDERS TO THE FRANCHISE AGREEMENT
ILLINOIS RIDER TO THE FRANCHISE AGREEMENT
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- Illinois law governs the Franchise Agreement.
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- In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to the 2025 Fat Shack Franchise Disclosure Document, Exhibit VI to the Franchise Agreement pertains to riders for specific states and provinces. These riders are incorporated into the Franchise Agreement if marked as "Applicable Rider." If there are conflicting terms between the rider and the Franchise Agreement, the terms of the rider will take precedence.
Additionally, Attachment L to the Disclosure Document includes state addenda to the Franchise Disclosure Document. As an example, the document mentions that modifications are made for Indiana due to the Indiana Franchises Act and the Indiana Deceptive Franchise Practices Act. One such modification adds a statement to Item 12, addressing restrictions on Fat Shack establishing franchisor-owned outlets in Indiana that are substantially identical to the franchised business within a certain area.
Prospective franchisees should carefully review Exhibit VI and Attachment L, along with any other state-specific riders or addenda, to understand how these modifications may affect their rights and obligations under the Franchise Agreement, depending on the state in which they plan to operate a Fat Shack franchise.