Under the Fat Shack Development Agreement, is FSI responsible for supervising the franchisee's activities?

According to Fat Shack's 2025 Franchise Disclosure Document, under the Development Agreement, Fat Shack International (FSI) is not responsible for supervising the franchisee's activities. The franchisee operates as an independent contractor and is not considered an agent, partner, or employee of FSI. The agreement explicitly states that no agency or partnership is created, and the franchisee cannot bind FSI or incur liabilities on its behalf.

This means that as a Fat Shack franchisee, you are responsible for the day-to-day operations and management of your restaurant. While Fat Shack may offer support and guidance, the ultimate responsibility for the restaurant's success lies with you. This independence allows you to make decisions based on your local market conditions, but it also requires you to handle all aspects of the business, from hiring and training staff to managing inventory and ensuring customer satisfaction.

However, the franchisee is still required to operate the Fat Shack restaurant in compliance with the Development Agreement and the Operations Manual. This includes maintaining a clean and safe environment, adhering to quality standards, and operating in a manner that does not negatively impact the Fat Shack brand. The franchisee must also comply with all applicable laws and regulations. While FSI does not directly supervise daily activities, they can enforce compliance with these standards and agreements.