Are there any riders to the Fat Shack Development Agreement for specific states or provinces?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.12.
To the extent that any of the Riders to Development Agreement for Specific States and Provinces attached as Exhibit C are applicable, such rider is incorporated herein and this Development Agreement is modified accordingly.
The provisions in any applicable rider are included as a condition to
registration or use in certain jurisdictions, and FSI is not precluded from contesting the validity, enforceability, or applicability of such provisions in any action relating to this Development Agreement or its rescission or termination.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to the 2025 Fat Shack Franchise Disclosure Document, the Development Agreement may be subject to riders for specific states and provinces. Exhibit C to the Development Agreement addresses these riders. If any of the listed riders for specific states or provinces are marked as 'Applicable Rider,' they are incorporated into the Development Agreement. In case of conflicts between the rider and the Development Agreement, the terms of the rider will take precedence.
Specifically, Section 8.12 of the Development Agreement states that any applicable riders to the Development Agreement for Specific States and Provinces, which are attached as Exhibit C, are incorporated into the agreement and modify it accordingly. However, Fat Shack retains the right to contest the validity, enforceability, or applicability of these provisions in any action related to the Development Agreement.
This means that prospective Fat Shack franchisees need to carefully review Exhibit C and any riders that may apply to their specific state or province. They should understand how these riders modify the standard Development Agreement and be aware that Fat Shack reserves the right to challenge the applicability of these riders. Franchisees should seek legal counsel to fully understand their rights and obligations under the Development Agreement and any applicable riders.