Under what conditions will Fat Shack generally approve the relocation of a Fat Shack Restaurant?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
You must obtain our prior written approval to relocate your Restaurant Location. We will generally approve the relocation of your FAT SHACK Restaurant if the new Restaurant Location is within your Protected Territory (described below) and meets our standards for your initial Restaurant Location, although we reserve the right to establish further standards.
Subject to the paragraph below regarding Captive Audience Venues and Special Venues and Channels noted below, you will be granted a geographic area around your Restaurant Location (the "Protected Territory") in which we will not operate, nor permit a third party to operate, a FAT SHACK Restaurant as long as you are in substantial compliance with all the provisions of the Franchise Agreement. The Protected Territory is an area encompassing a three mile radius around the FAT SHACK Restaurant as measured from the front door of the Restaurant. A FAT SHACK Restaurant at a Captive Audience Venue does not have a Protected Territory.
Source: Item 12 — Territory (FDD pages 36–39)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, a franchisee must obtain prior written approval from Fat Shack to relocate their restaurant location. Fat Shack will generally approve a relocation if the new location is within the franchisee's Protected Territory. Additionally, the new location must meet Fat Shack's standards for initial restaurant locations. However, Fat Shack retains the right to establish further standards for relocation approval.
This means that while Fat Shack provides some guidelines for relocation, they also maintain significant discretion in the approval process. A franchisee cannot simply move their Fat Shack restaurant without permission, even if they believe the new location is suitable. The franchisee must ensure the new location meets the initial standards and is within their protected territory to increase the likelihood of approval.
The Protected Territory is defined as a geographic area around the restaurant location, specifically a three-mile radius measured from the front door of the restaurant. However, it's important to note that Fat Shack restaurants in Captive Audience Venues do not have a Protected Territory. This lack of a protected territory could impact a franchisee's decision to relocate, as it may affect their ability to maintain the same level of business in the new location.
Prospective franchisees should carefully consider these relocation conditions and the definition of the Protected Territory when evaluating a Fat Shack franchise. It is essential to discuss potential relocation scenarios with Fat Shack during the due diligence process to fully understand the franchisor's expectations and approval criteria. Understanding these factors can help a franchisee make informed decisions about site selection and future business planning.