factual

Under what conditions can the Fat Shack Restaurant opening deadline be extended?

Fat_Shack Franchise · 2025 FDD

Answer 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.

If you do not agree with the lease provisions that we give to you or have negotiated with the landlord (if we become involved in that process), you need not move forward with the particular site but then you must find another suitable site for the Restaurant Location.

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, a franchisee must open their Fat Shack Restaurant within 18 months after signing the Franchise Agreement. However, Fat Shack may agree to extend this deadline. Specifically, Fat Shack will extend the restaurant opening deadline for up to three successive 90-day periods.

To secure an extension for selecting a restaurant location and signing a lease, which must initially occur within 270 days of signing the Franchise Agreement, several conditions must be met. First, factors beyond the franchisee's reasonable control must be preventing them from meeting the deadline. Second, the franchisee must have made reasonable and continuing efforts to obtain and submit an acceptable site and lease for approval. Third, a written request to extend the time to sign a lease must be delivered at least five days prior to the applicable deadline.

For any extensions past the initial 90-day extension, the franchisee must pay Fat Shack a Site Acquisition Extension Fee for each additional 90-day extension period when delivering the written request. It is important to note that a franchisee does not have the right to extend these deadlines if they are otherwise in default of the Franchise Agreement or any other agreement with Fat Shack. If site approval is not obtained within the specified timeframe, Fat Shack reserves the right to terminate the Franchise Agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.