What is the timeframe for discharging an execution levied against a Fat Shack Restaurant to avoid termination?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
If any material judgment (or several judgments which in the aggregate are material) is obtained against Franchisee and remains unsatisfied or of record for 30 days or longer (unless a supersedeas or other appeal bond has been filed); or if execution is levied against Franchisee's FAT SHACK Restaurant or any of the property used in the operation of the FAT SHACK Restaurant and is not discharged within five
days; or if the real or personal property of Franchisee's FAT SHACK Restaurant shall be sold after levy thereupon by any sheriff, marshal or constable.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, a franchisee has a limited time to resolve an execution levied against their restaurant to avoid potential termination of their franchise agreement. Specifically, if an execution is levied against the Fat Shack restaurant or any property used in its operation, the franchisee must discharge it within five days.
This requirement means that if a creditor or other party obtains a legal judgment and seeks to seize assets of the Fat Shack business to satisfy that debt, the franchisee must act quickly to resolve the situation. This could involve paying the debt, negotiating a settlement, or taking other legal actions to remove the levy. Failure to do so within the five-day window constitutes grounds for Fat Shack to terminate the franchise agreement.
This clause is significant because it highlights the importance of maintaining the financial health of the franchise. Franchisees need to manage their finances carefully to avoid judgments and executions that could jeopardize their business and their franchise rights. The short timeframe underscores the urgency of addressing such issues promptly to prevent termination by Fat Shack.