Under what circumstances does a Fat Shack franchisee not have the right to extend the deadlines for site selection?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
You must select your Restaurant Location and sign a lease or otherwise acquire the right to use the location within 270 days of signing the Franchise Agreement. We will extend this deadline for up to three successive 90-day periods if (i) factors beyond your reasonable control prevent you from meeting the applicable deadline, (ii) you have made reasonable and continuing efforts to obtain and submit for approval an acceptable site and lease, (iii) you deliver a written request to extend the time to sign a lease at least five days prior to the applicable deadline, and (iv) for any extensions past the first 90-day extension, at the time you deliver the written request to us, you pay us the Site Acquisition Extension Fee for each additional 90-day extension period. You do not have any right to extend these deadlines if you are otherwise in default of the Franchise Agreement or any other agreement with us.
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, a franchisee's right to extend the deadline for site selection is contingent upon their compliance with the Franchise Agreement. The standard timeframe for a Fat Shack franchisee to select a restaurant location and secure the rights to use it is 270 days from the date of signing the Franchise Agreement.
Fat Shack does allow for extensions to this deadline, offering up to three successive 90-day extension periods. However, these extensions are not automatic. To qualify, the franchisee must demonstrate that factors beyond their control have hindered their progress, that they have made consistent efforts to find and propose an acceptable site and lease, and that they submit a written request for an extension at least five days before the deadline. Furthermore, for any extension beyond the initial 90-day period, the franchisee must pay a Site Acquisition Extension Fee at the time of submitting the written request.
Importantly, the FDD stipulates that a Fat Shack franchisee forfeits the right to any extensions if they are in default of the Franchise Agreement or any other agreement with Fat Shack. This condition underscores the importance of adhering to all contractual obligations to maintain the flexibility of extending the site selection deadline. Therefore, prospective franchisees should be aware that any breach of contract could impact their ability to secure a suitable location within an extended timeframe.