When transferring a Fat Shack franchise, what documents are required to be signed and delivered?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise or Other Agreement | Summary | |
|---|---|---|---|
| m. | Conditions for our approval of transfer | Section 17.2 of FA; Sections 5.3 and 5.4 of DA | For the Franchise Agreement, the following conditions will apply: Full compliance, transferee qualifies, all amounts due are paid in full, all reports submitted, you have not breached any obligation during 60 day period before you requested our consent to transfer or during period between your request and the effective date of the transfer, transferee signs our then current form of franchise agreement (which may differ materially), transferee and its owners and affiliates do not operate or have ownership interest in competitive business, lease transferred, subordination of amounts due to you and your owners from transferee, completion of training, transfer fee paid, on-site assistance fee paid (if applicable), and sign and deliver other required documents (including release). For the Development Agreement, the following conditions will apply in addition to those listed above: Fee for each undeveloped FAT SHACK Restaurant paid, and concurrent transfer of underlying Franchise Agreements. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 43–46)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the requirements for transferring a franchise involve several steps and documents. To gain approval for a transfer, a franchisee must meet specific conditions. The prospective transferee must qualify and sign Fat Shack's then-current form of franchise agreement, which may differ materially from the original agreement.
In addition to the new franchise agreement, the transferring franchisee must ensure all due amounts are paid, and all required reports have been submitted. The franchisee must not have breached any obligations within 60 days before requesting consent to transfer or during the period between the request and the transfer's effective date. The lease must be transferred, and any amounts owed to the transferring franchisee or their owners from the transferee must be subordinated.
Furthermore, the transferee must complete the necessary training, and all applicable transfer and on-site assistance fees must be paid. Finally, the transferring franchisee is required to sign and deliver other documents, including a release, as required by Fat Shack. For a Development Agreement, a fee for each undeveloped Fat Shack Restaurant must be paid, along with a concurrent transfer of the underlying Franchise Agreements.