factual

What additional payments are Marble Slab Creamery franchisees responsible for?

Marble_Slab_Creamery Franchise · 2025 FDD

Answer from 2025 FDD Document

r overestimates any fee due to Franchisor and collect the same from Franchisee, then Franchisor will credit the surplus amounts paid against fees due in the next payment period (once Franchisor receives accurate records regarding the Net Sales of the Restaurant operated under this Agreement).

  • 4.7 Any payment or report not actually received by Franchisor on or before the due date will be deemed overdue. If any payment is overdue, Franchisee will pay Franchisor, in addition to the overdue amount, interest on such amount from the date it was due until paid at the rate of one and one-half percent (1.5%) per month, or the maximum rate permitted by Applicable Law, whichever is less, calculated on a daily basis, and a late charge of $125 per week for each week during which such payment is not received by Franchisor. Entitlement to such interest and late charge will be in addition to any other remedies Franchisor may have.
  • 4.8 Upon Franchisor's demand, Franchisee shall reimburse Franchisor for its direct and indirect costs (including the reasonable value of Franchisor's employees and its Affiliates employees) incurred in connection with Franchisor's review of Franchisee's proposed lease or real estate purchase agreement, up to a maximum of $2,500, unless Franchisee has previously reimbursed Franchisor for its review of such lease or real estate purchase agreement. If Franchisor has reviewed and accepted Franchisee's lease or purchase agreement, such review and acceptance is solely for Franchisor's benefit and, is solely an indication that the lease or purchase agreement, as applicable, meets Franchisor's minimum standards and specifications at the time of acceptance. Such review and acceptance shall not be construed as any express or implied representation or warranty that an accepted lease or purchase agreement complies with applicable law or represents a transaction that is fair or is in Franchisee's best interest.

5. DUTIES OF FRANCHISEE

Franchisee understands and acknowledges that every detail of the Restaurant operated hereunder is important to Franchisee and Franchisor in order to develop and maintain high operating

standards, to increase the demand for the services and products sold by all Marble Slab Creamery franchisees, and to protect Franchisor's reputation and goodwill.

  • 5.1 A Franchisee which is a corporation will comply, except as otherwise approved in writing by Franchisor, with the following requirements throughout the term of this Agreement:
  • 5.1.1 Franchisee will furnish Franchisor with its Articles of Incorporation, By-laws, other governing documents, any other documents Franchisor may reasonably request, and any amendments thereto.
  • 5.1.2 Franchisee will confine its activities exclusively to operating the Restaurant and any other "MARBLE SLAB CREAMERY" restaurants owned and operated by Franchisee pursuant to a validly existing franchise agreement.
  • 5.1.3 Franchisee will maintain stop transfer instructions against the transfer on its records of any Equity securities; and will issue no securities upon the face of which does not legibly and conspicuously appear a printed legend in the form reasonably prescribed by Franchisor stating that the transfer of such stock is subject to the terms and conditions of this Agreement.
  • 5.1.4 Franchisee will maintain a current list of all owners of record and all beneficial owners of any class of voting securities or securities convertible into voting securities of Franchisee and will furnish the list to Franchisor upon request.

Source: Item 22 — CONTRACTS (FDD page 101)

What This Means (2025 FDD)

According to the 2025 Marble Slab Creamery Franchise Disclosure Document, franchisees may incur several additional payments beyond the initial franchise fee and ongoing royalties. These potential costs relate to overdue payments, lease reviews, system upgrades, transfer-related expenses, and obligations upon termination or expiration of the franchise agreement.

Specifically, if a Marble Slab Creamery franchisee's payment is overdue, they will incur interest at a rate of 1.5% per month (or the maximum rate permitted by law, if lower) calculated daily, along with a late charge of $125 per week. Franchisees might also have to reimburse Marble Slab Creamery for costs associated with reviewing proposed lease or real estate purchase agreements, up to a maximum of $2,500. Furthermore, franchisees are responsible for purchasing necessary upgrades and updates to the software and hardware components of the information systems that Marble Slab Creamery deems necessary.

In the event of a transfer of ownership, the transferee may need to upgrade the Marble Slab Creamery restaurant to meet current standards, unless the franchisee has recently refurbished the restaurant. The transferee's operating partner or manager may also need to complete additional training programs. Upon termination or expiration of the franchise agreement, the franchisee is responsible for paying all sums owed to Marble Slab Creamery, including potential damages, costs, and expenses, such as attorney's fees, resulting from any default. They are also liable for costs incurred by Marble Slab Creamery in obtaining injunctive relief to enforce the provisions of the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.