Under what conditions can a Fat Shack franchisee relocate their restaurant?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
nt Location. If the term of the lease for the Restaurant Location ends before the term of this Agreement expires, Franchisee shall negotiate a renewal of the lease term in good faith. If Franchisee is unable to renew the lease at the Restaurant Location, Franchisee may find a different site within the original Protected Territory, submit it to FSI for approval with, if applicable, the Relocation Fee, and, following FSI's approval, move Franchisee's FAT SHACK Restaurant to the new location, at Franchisee's sole cost.
- i. Franchisee agrees to renovate, refurbish, remodel or replace, at its own expense, the real and personal property and equipment used in the operation of the FAT SHACK Restaurant, when required by FSI in order to comply with the image, standards of operation and performance capability established by FSI from time to time. If FSI changes its image or standards of operation, it shall give Franchisee a reasonable period of time within which to comply with such changes.
- j. Franchisee shall not operate any other business or profession from or through the FAT SHACK Restaurant. If Franchisee is an entity, the entity shall only operate the FAT SHACK Restaurant governed by this Agreement and no other business, unless Franchisee receives FSI's prior written approval.
- k. Franchisee shall at all times during the term of this Agreement own and control the FAT SHACK Restaurant authorized hereunder. Upon request of FSI, Franchisee shall promptly provide satisfactory proof of such ownership to FSI. Franchisee represents that the Statement of Ownership, attached hereto as Exhibit IV, is true, complete, accurate and not misleading. Franchisee shall promptly provide FSI with a written notification if the information contained in the Statement of Ownership changes at any time during the term of this Agreement and shall comply with the applicable transfer provisions contained in Article 17.
- l. Franchisee shall at all times during the term of this Agreement keep its FAT SHACK Restaurant open during the business hours as may be designated by FSI from time to time in the Operations Manual. At a minimum, Franchisee will remain open until 2:30 a.m. two nights a week, and until 12:30 a.m. five days per week. These minimum standards may be changed by FSI by changes to the Operations Manual. Any deviations from the required hours must be approved in writing by FSI.
- m. Franchisee must offer delivery services through its FAT SHACK Restaurant.
- n.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, a franchisee can relocate their restaurant under specific circumstances, primarily related to the lease agreement or significant damage to the current location. If the franchisee is unable to renew the lease at the current restaurant location, they have the option to find a new site within their original protected territory. This new site must be submitted to Fat Shack for approval, and the franchisee may be required to pay a relocation fee. Once Fat Shack approves the new location, the franchisee can move their Fat Shack restaurant to the new site, bearing all associated costs.
Additionally, if the current restaurant location suffers significant damage due to condemnation or casualty (such as a fire), making continued operation impractical according to Fat Shack's standards, the franchisee has 90 days to select a new location, obtain Fat Shack's approval for the new site and lease agreement, and recommence operations. It's important to note that if the number of presented leases and purchase agreements exceeds two, the franchisee will be required to pay Fat Shack a Lease Review Fee.
Relocating a Fat Shack restaurant also requires the franchisee to submit information about the proposed location to Fat Shack for approval, in accordance with the terms outlined in the franchise agreement. A "Relocation Fee" is required, which is equal to 25 percent of the then-current Initial Franchise Fee for a first Fat Shack Restaurant. The rights granted to the franchisee are specific to the restaurant location and cannot be transferred without Fat Shack's prior written approval. The franchisee must adhere to Fat Shack's standards and specifications when recommencing operations at the new location.