What written notice period is required before the expiration of the Fat Shack franchise term to renew?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise or | Summary | |
|---|---|---|---|
| Other Agreement | |||
| a. Length of the franchise term | Section 18.1 of Franchise Agreement (“FA”); Article 4 of Development Agreement (“DA”) | 7 years for the Franchise Agreement. For the Development Agreement, the term extends until the earlier of the date that you sign the Franchise Agreement for the final FAT SHACK Restaurant to be developed under the Development Agreement or the deadline in the development schedule for signing that Franchise Agreement. | |
| b. Renewal or extension of the | Section 18.3 of FA | Option to renew for up to three additional 5 year terms | |
| term | after the initial term. | ||
| c. Requirements for you to renew or extend | Sections 18.3 and 18.4 of FA | Written notice at least 180 days before expiration, sign then-current form of Franchise Agreement (which may contain materially different terms from your original contract), sign Successor Franchise Rider in the form attached as Attachment F containing a release, be in compliance with Franchise Agreement, pay fee, and renovate (if applicable). |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 43–46)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, a franchisee must provide written notice at least 180 days before the expiration of their current franchise agreement if they wish to renew. The initial franchise term is 7 years.
In addition to providing timely written notice, the franchisee must also sign the then-current form of the Franchise Agreement, which may contain terms that are materially different from the original agreement. They must also sign a Successor Franchise Rider, which includes a release, be in compliance with the existing Franchise Agreement, pay the renewal fee, and complete any required renovations.
This renewal process is fairly standard in the franchise industry, as franchisors need ample time to evaluate a franchisee's performance and ensure they meet the brand's current standards before granting a renewal. The potential for materially different terms in the new agreement is also typical, as franchise systems evolve over time. It is important for a prospective Fat Shack franchisee to understand all of the conditions required for renewal to ensure they can meet them when the time comes.