Can Fat Shack withhold approval of items or suppliers for any reason?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
If you want to purchase or lease any inventory items, products, equipment, supplies, or services we have not approved or through a supplier who we have not previously approved, you must notify us in writing and obtain our approval in advance. The notification should include sufficient specifications, photographs, drawings and other information and samples to determine whether those items or those suppliers meet our specifications. You must reimburse us for the actual cost of any testing and the reasonable cost of investigation to determine whether those items or suppliers meet our specifications. We will advise you within 30 days after we receive all required information and complete any inspection or investigation whether the items or suppliers meet our specifications. We may, in our sole discretion, for any reason whatsoever, elect to withhold approval of the items or suppliers. We reserve the right to change the published standards regarding any approved supplier or any products, equipment, supplies, or services used, offered for sale or leased by franchisees on 30 days written notice to all franchisees and all approved suppliers. We may revoke our approval of any products, equipment, supplies, services, or suppliers previously approved by written notice to the supplier and each franchisee using that supplier.
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, Fat Shack has the authority to withhold approval of items or suppliers for any reason. If a franchisee wants to purchase or lease any inventory items, products, equipment, supplies, or services that Fat Shack has not approved, or through a supplier who Fat Shack has not previously approved, the franchisee must notify Fat Shack in writing and obtain their approval in advance.
The notification to Fat Shack should include sufficient specifications, photographs, drawings, and other information and samples to determine whether those items or those suppliers meet Fat Shack's specifications. The franchisee is responsible for reimbursing Fat Shack for the actual cost of any testing and the reasonable cost of investigation to determine whether those items or suppliers meet their specifications. Fat Shack will advise the franchisee within 30 days after they receive all required information and complete any inspection or investigation whether the items or suppliers meet their specifications.
However, Fat Shack maintains the right to withhold approval of the items or suppliers for any reason whatsoever, at their sole discretion. Fat Shack also reserves the right to change the published standards regarding any approved supplier or any products, equipment, supplies, or services used, offered for sale, or leased by franchisees, providing 30 days written notice to all franchisees and all approved suppliers. Fat Shack may also revoke their approval of any products, equipment, supplies, services, or suppliers previously approved by written notice to the supplier and each franchisee using that supplier.