edge_case

Under what circumstances might a Fat Shack franchisee be exempt from participating in a promotion?

Fat_Shack Franchise · 2025 FDD

Answer from 2025 FDD Document

From time to time a promotion may not benefit all franchisees in the FAT SHACK system; and if the promotion is not offered in the region, or another unknown hardship arises, FSI may, at FSI's option, exempt Franchisee and/or other franchisees on a case-by-case basis.

Source: Item 23 — Receipts (FDD pages 53–223)

What This Means (2025 FDD)

According to Fat Shack's 2025 Franchise Disclosure Document, franchisees are generally required to participate in all promotional campaigns prescribed by Fat Shack, but there are exceptions. Fat Shack may, at its option, exempt a franchisee from participating in a promotion on a case-by-case basis if the promotion is not offered in the franchisee's region or if another unknown hardship arises.

This exemption is at Fat Shack's discretion, meaning a franchisee cannot demand an exemption, even if they believe a promotion will not benefit them. The FDD states that Fat Shack acknowledges that promotions may not benefit all franchisees and retains the right to decide whether or not to grant an exemption.

For a prospective Fat Shack franchisee, this means that while you are generally expected to participate in all promotions, there is a possibility of being excused under specific circumstances. However, these circumstances are not clearly defined, and the decision to grant an exemption rests solely with Fat Shack. It would be prudent for a potential franchisee to discuss specific scenarios with Fat Shack to understand how these exemptions are applied in practice.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.