Does Fat Shack typically own the premises that franchisees lease for their restaurants?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
You must select the premises for your FAT SHACK Restaurant and sign a lease or otherwise acquire the right to use the location. We do not generally own the premises that franchisees lease for their FAT SHACK Restaurants, and instead the property is typically leased from a third party. If we approve the location, we may assist you in negotiating your lease, or, if applicable, purchase agreement, to ensure that it meets our minimum requirements, although we have no obligation to do so. If we do not approve your site, you must propose a new site. You must not, without our prior written approval, enter into any contract or letter of intent to contract to purchase or lease the premises you intend to use as a Restaurant
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 28–36)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, franchisees are responsible for selecting and securing the premises for their Fat Shack restaurant. Fat Shack does not typically own the properties that franchisees lease; instead, franchisees usually lease the property from a third party.
Fat Shack must approve the franchisee's chosen location. Fat Shack may assist in negotiating the lease or purchase agreement to ensure it meets the brand's minimum requirements, but they are not obligated to do so. If Fat Shack does not approve of the site, the franchisee must propose a new location. The franchisee cannot enter into any contract or letter of intent to purchase or lease a location without Fat Shack's prior written approval.
Fat Shack considers factors such as the location of competing Fat Shack restaurants, potential customers, population density, proximity to college campuses, and traffic patterns when approving a site. The approval process typically takes 30 days once all necessary documentation is submitted. Fat Shack usually provides initial lease review comments within one to two weeks of receiving the lease, but the entire negotiation process can take from two weeks to two months, depending on the landlord's responsiveness. Fat Shack recommends that franchisees have their own attorney review the lease, as the legal counsel engaged by Fat Shack is solely representing Fat Shack's interests.