Under what circumstances can a Fat Shack franchisee terminate the Franchise Agreement, as outlined in Section 19.1?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
by Franchisee
Franchisee shall have the right to terminate this Agreement due to a material breach of this Agreement by FSI, provided Franchisee provides FSI with written notice of the breach within 60 days of
the breach and a reasonable opportunity to cure such breach, which shall in no event be less than 60 days. Notwithstanding the foregoing, if the breach is curable, but is of a nature which cannot be reasonably cured within such 60-day period and FSI has commenced and is continuing to make good faith efforts to cure the breach, FSI shall be given an additional reasonable period of time to cure the same, and this Agreement shall not terminate. Any termination by Franchisee other than in accordance with this section will be deemed a termination by Franchisee without cause and the Restaurant will be considered abandoned.
19.2.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to the 2025 Fat Shack Franchise Disclosure Document, a franchisee can terminate the Franchise Agreement if Fat Shack materially breaches the agreement. To do so, the franchisee must provide Fat Shack with written notice of the breach within 60 days of its occurrence.
Fat Shack then has a reasonable opportunity to fix the breach, but this period will not be less than 60 days. If the breach is something that cannot reasonably be fixed within 60 days, and Fat Shack has started and continues to make good faith efforts to fix it, Fat Shack will be given an additional reasonable period of time to cure the breach, and the agreement will not terminate.
If a Fat Shack franchisee terminates the agreement in any way other than as described in Section 19.1, it will be considered a termination by the franchisee without cause, and the restaurant will be considered abandoned. This highlights the importance of adhering to the specific procedures outlined in the Franchise Agreement to avoid potential penalties or loss of the franchise.