What written notice period is required to renew or extend a Fat Shack franchise term?
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 the 2025 Fat Shack Franchise Disclosure Document, a franchisee must provide written notice to Fat Shack at least 180 days before the expiration of the current franchise term to renew or extend the agreement. This advance notice allows Fat Shack to assess the franchisee's compliance and make necessary arrangements for the renewal process.
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 differ materially from the original contract. The franchisee is also required to 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 to the Fat Shack location.
These requirements ensure that Fat Shack can maintain consistent brand standards and protect its interests during the renewal process. For a prospective franchisee, it's crucial to understand these obligations and plan accordingly to meet all conditions for renewal within the specified timeframe. Failure to comply with these requirements could result in the franchisee losing the opportunity to renew their franchise agreement.