What are the two possible end dates for the term of the Fat Shack Development Agreement?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.1. Unless sooner terminated in accordance with this Article 4, this Development Agreement shall commence as of the date of execution hereof and shall end on the earlier of (1) the date the last Subsequent Franchise Agreement is executed to open the maximum number of FAT SHACK Restaurants set forth in the Addendum, or (2) the date of the deadline set forth in the Development Schedule for Franchisee to execute the Franchise Agreement for the last of its FAT SHACK Restaurants to be developed under this Development Agreement. After expiration of the term, or earlier termination of this Development Agreement as provided below, FSI shall have the right to establish, or license any other party to establish FAT SHACK Restaurants anywhere within the Protected Area.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the Development Agreement's term concludes based on two possible scenarios. The agreement starts on the execution date and ends on the earlier of two dates.
First, the Development Agreement ends when the last Subsequent Franchise Agreement is executed to open the maximum number of Fat Shack restaurants outlined in the Addendum. This means that if a developer fulfills their development schedule ahead of time, the agreement concludes once all planned locations are operational under individual franchise agreements.
Alternatively, the Development Agreement can end on the deadline specified in the Development Schedule for the franchisee to execute the Franchise Agreement for the last Fat Shack restaurant to be developed. This provides a fixed endpoint, regardless of whether all restaurants have been opened, based on the agreed-upon development timeline. After the Development Agreement expires or terminates, Fat Shack has the right to establish or license others to establish Fat Shack restaurants within the protected area.