Under what grounds can a Fat Shack franchisee terminate the franchise agreement in Washington?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
by Franchisee
Franchisee shall have the right to terminate this Agreement due to a material breach of this Agreement by FSI, provided Franchisee provides FSI with written notice of the breach within 60 days of
the breach and a reasonable opportunity to cure such breach, which shall in no event be less than 60 days. Notwithstanding the foregoing, if the breach is curable, but is of a nature which cannot be reasonably cured within such 60-day period and FSI has commenced and is continuing to make good faith efforts to cure the breach, FSI shall be given an additional reasonable period of time to cure the same, and this Agreement shall not terminate. Any termination by Franchisee other than in accordance with this section will be deemed a termination by Franchisee without cause and the Restaurant will be considered abandoned.
19.2.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to the 2025 Fat Shack Franchise Disclosure Document, a franchisee can terminate the franchise agreement if Fat Shack materially breaches the agreement. To do so, the franchisee must provide Fat Shack with written notice of the breach within 60 days of its occurrence. Fat Shack then has a reasonable opportunity, but not less than 60 days, to cure the breach.
However, if the breach is of a nature that it cannot be reasonably cured within 60 days, and Fat Shack has started and continues to make good faith efforts to fix the breach, Fat Shack will be given an additional reasonable period of time to cure it. If the franchisee terminates the agreement in any way other than as described in this section, it will be considered a termination by the franchisee without cause, and the restaurant will be considered abandoned.
It is important for a prospective Fat Shack franchisee to understand the specific conditions under which they can terminate the agreement to avoid penalties or considering the restaurant abandoned. This also ensures they understand the process for notifying Fat Shack of any breaches and allowing them an opportunity to resolve the issue.