Under what circumstances can Fat Shack waive the minimum sales quota requirement for a franchisee?
Fat_Shack Franchise · 2025 FDDAnswer 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 the 2025 Fat Shack Franchise Disclosure Document, Fat Shack may choose to exempt a franchisee from promotional requirements, and by extension, the minimum sales quota, on a case-by-case basis. This can occur if a promotion is not offered in the franchisee's region or if another unforeseen hardship arises. This decision is at Fat Shack's discretion.
This clause provides Fat Shack with the flexibility to address specific challenges faced by individual franchisees. For example, if a national promotion is not relevant to a particular geographic area due to local market conditions, Fat Shack can choose to exempt the franchisee in that area. Similarly, if a franchisee experiences an unexpected event that negatively impacts their sales, Fat Shack has the option to provide relief by waiving the minimum sales quota.
For a prospective Fat Shack franchisee, this discretionary power held by Fat Shack could be viewed as both a potential benefit and a risk. On one hand, it offers a safety net in case of unforeseen circumstances. On the other hand, the franchisee has no guarantee that Fat Shack will grant an exemption, even if they believe they have a valid reason. It is important for potential franchisees to understand that these decisions are made on a case-by-case basis and are subject to Fat Shack's discretion.