Is written consent from FSI required before a Fat Shack franchisee can commence restaurant operations?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
f Operations
Unless otherwise agreed in writing by FSI and Franchisee, Franchisee has 12 months from the date of this Agreement (which may be extended for up to a total of $1\frac{1}{2}$ years as provided in Section 6.4) within which to complete the initial training program, described in Section 7.1, and commence operation of the FAT SHACK Restaurant. Franchisee shall obtain the written consent of FSI prior to commencing operation of the FAT SHACK Restaurant, which cannot be granted until FSI has approved the Restaurant Location and the lease, and Franchisee has: (1) successfully completed the initial training program; (2) paid all fees and other amounts due to FSI; (3) furnished FSI with copies of all insurance policies required by this Agreement; (4) built-out and equipped the Restaurant Location in accordance with FSI's standards
and specifications, and delivered a certificate of occupancy to FSI; (5) purchased an inventory of approved products and supplies; and (6) otherwise completed all other aspects of development of the FAT SHACK Restaurant as FSI shall have required.
7. TRAINING
7.1. Initial Training Program
Franchisee (or, if Franchisee is a corporation, partnership, or limited liability company, its managing shareholder, partner or member ("Managing Owner")) and the person designated by Franchisee to assume primary responsibility for the management of the FAT SHACK Restaurant ("General Manager") must attend and successfully complete the initial training program which is offered by FSI at one of FSI's designated training facilities.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, a franchisee must obtain written consent from FSI (Fat Shack International) before commencing restaurant operations. Unless otherwise agreed in writing by Fat Shack and the franchisee, the franchisee has 12 months from the date of the Franchise Agreement (which may be extended for up to a total of 1 1/2 years under certain conditions) to complete the initial training program and commence operations.
Fat Shack's written consent cannot be granted until FSI has approved the restaurant location and the lease agreement. Additionally, the franchisee must have successfully completed the initial training program, paid all fees and other amounts due to FSI, and furnished FSI with copies of all required insurance policies. The franchisee must also build out and equip the restaurant location according to Fat Shack's standards.
Beginning operations without FSI's prior written consent, as required in Section 6.9 of the franchise agreement, constitutes grounds for termination of the agreement by FSI, effective immediately upon notice to the franchisee, without any opportunity to cure the default. This underscores the importance of adhering to the pre-opening requirements and obtaining all necessary approvals from Fat Shack before commencing operations to avoid potential termination of the franchise agreement.