Under what conditions can a Fat Shack franchisee be exempted from participating in promotional campaigns?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as prohibited or limited by law or unless we exempt you from a particular promotion, you must, at your sole cost, fully participate in all promotional campaigns, prize contests, special offers, discount programs, including deal-of-the-day and crowdsourcing programs, and other programs, whether national, regional, or local in nature, which we prescribe. In addition, at your sole cost, you must honor any coupons, gift certificates, gift cards, discounts, or other authorized promotional offers that we prescribe for the franchise system, unless we agree otherwise. In our discretion, we may create and make available to the public a mobile device application for the FAT SHACK system, which may incorporate
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 22–26)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, franchisees are generally required to participate in all promotional campaigns, prize contests, special offers, and discount programs, including deal-of-the-day and crowdsourcing programs, at their own cost. They must also honor any coupons, gift certificates, gift cards, discounts, or other authorized promotional offers prescribed by Fat Shack for the franchise system. This includes participation in and honoring promotional programs and offers through any mobile device application Fat Shack makes available to the public.
However, there are two specific conditions under which a Fat Shack franchisee may be exempt from participating in these promotional campaigns. The first is if participation is prohibited or limited by law. The second is if Fat Shack, in its discretion, chooses to exempt a franchisee from a particular promotion.
It is important for prospective Fat Shack franchisees to understand these conditions, as participation in promotional campaigns can significantly impact their operating costs. Franchisees should inquire about the types of promotional campaigns typically conducted, the associated costs, and the circumstances under which an exemption might be granted. Understanding these factors will help franchisees budget effectively and anticipate their marketing obligations under the franchise agreement.