What use provision must the Fat Shack lease contain?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
The primary lease must contain certain provisions granting us certain rights, as your franchisor, including:
- (vi) The lease must contain a use provision which is acceptable to us, including the requirement that only a FAT SHACK Restaurant may be operated on the premises without our prior written consent.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 22–26)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the lease for a Fat Shack location must include a use provision that is acceptable to Fat Shack. This provision must specify that only a Fat Shack Restaurant can be operated on the premises unless Fat Shack provides prior written consent for another type of business.
This requirement ensures that the leased property is used exclusively for the operation of a Fat Shack restaurant, maintaining brand consistency and preventing any unauthorized use of the premises that could potentially harm the Fat Shack brand. This protects Fat Shack's brand identity and operational standards at the franchise location.
For a prospective franchisee, this means they cannot operate any other type of business from the leased location without explicit approval from Fat Shack. It also means Fat Shack has the right to reject a lease if the use provision is not acceptable to them, giving Fat Shack control over the types of businesses operating at or near its franchise locations. This provision is one of several that Fat Shack requires in the primary lease to protect its interests as the franchisor.