Under what conditions can Fat Shack International (FSI) terminate the franchise agreement with a thirty-day notice?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
FSI shall have the right to terminate this Agreement (subject to any state laws to the contrary, where state law shall prevail), effective upon 30 days written notice to Franchisee, if Franchisee breaches any other provision of this Agreement and fails to cure such breach within the 30-day period. Neither Section 19.2 nor this Section 19.3 shall be deemed to extend the cure period provided in any material agreement for the FAT SHACK Restaurant or any other agreement between FSI and Franchisee. So long as financing from the United States Small Business Administration remains outstanding, Franchisee will be given the same opportunity to cure defaults under any agreement between FSI or its affiliates and Franchisee, as Franchisee is given under this Agreement. Notwithstanding the foregoing, if the breach is curable, but is of a nature which cannot be reasonably cured within the applicable cure period and Franchisee has commenced and is continuing to make good faith efforts to cure the breach during such period, Franchisee shall be given an additional reasonable period of time to cure the same, and this Agreement shall not terminate.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, Fat Shack International (FSI) can terminate the franchise agreement with a franchisee by providing a 30-day written notice if the franchisee breaches any provision of the agreement and fails to correct the breach within that 30-day period. However, this is subject to any state laws that dictate otherwise, where state law would take precedence.
If the breach is something that cannot be reasonably fixed within 30 days, and the franchisee has started and continues to make a good faith effort to fix the breach during that period, Fat Shack will allow an additional reasonable period to correct the issue.
It's important to note that this 30-day cure period does not extend any cure periods provided in any material agreement for the Fat Shack Restaurant or any other agreement between FSI and the franchisee. Additionally, if the franchisee has financing from the United States Small Business Administration outstanding, the franchisee will be given the same opportunity to cure defaults under any agreement between FSI or its affiliates and the franchisee, as the franchisee is given under the franchise agreement.