Under what conditions can the deadline to select a location and sign a lease for a Fat Shack be extended?
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, franchisees have 270 days from signing the Franchise Agreement to select a restaurant location and secure the right to use it, typically through a lease. However, this deadline can be extended under specific conditions.
Fat Shack will grant up to three successive 90-day extensions if certain criteria are met. These include demonstrating that factors beyond the franchisee's control are preventing them from meeting the deadline, showing reasonable and continuous efforts to find and submit an acceptable site and lease for approval, and submitting a written request for an extension at least five days before the deadline. For any extension beyond the initial 90-day period, the franchisee must also pay a Site Acquisition Extension Fee at the time of submitting the written request for each additional 90-day extension period.
It's important to note that a franchisee loses the right to extend these deadlines if they are in default of the Franchise Agreement or any other agreement with Fat Shack. This provision ensures that only franchisees in good standing and actively working towards opening their location can benefit from the extension option. This is a fairly standard clause in franchise agreements, as franchisors want to ensure franchisees are committed and not delaying the process without valid cause.