Until what point can FSI continue the suspension of services to a Fat Shack franchisee who is in default?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
If FSI has provided Franchisee with a notice of any default pursuant to this Article 19, in addition to FSI's other remedies, FSI reserves the right, on behalf of itself and the FSI Affiliates, to suspend any services to be provided by FSI or any FSI Affiliate or the sales of any products to Franchisee by FSI or any FSI Affiliate until such time as Franchisee cures the default. The services that may be suspended include but are not limited to any services related to advertising or promotion of Franchisee's FAT SHACK Restaurant such as the listing of Franchisee's FAT SHACK Restaurant on any website. The suspension may continue until Franchisee has cured each default identified in the default notice from FSI and Franchisee is deemed to be in good standing. Franchisee is not relieved of any obligation to pay any fees during the term of any suspension. The rights afforded FSI in this Section 19.7 are in addition to any other rights of FSI upon a default by Franchisee.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, if a franchisee receives a notice of default, Fat Shack (FSI) can suspend services until the franchisee fixes the default. This suspension can include halting advertising or promotion of the Fat Shack restaurant, such as removing the restaurant's listing from the Fat Shack website. The suspension remains in effect until each default mentioned in the notice is resolved and the franchisee is considered in good standing again. Even if services are suspended, the franchisee must still pay all required fees.