Who bears the expense of refurbishing the Marble Slab Creamery restaurant?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
Fee;
- 12.2.3.8 At Franchisor's request, Franchisee and/or its Owners, the transferor and the transferee's Owners shall have executed a continuing guaranty in favor of Franchisor of the performance and payment by the transferee of all obligations and debts to Franchisor and its Affiliates under this Agreement and, if applicable, the replacement franchise agreement.
- 12.2.3.9 The transferee, at its expense, will upgrade the Restaurant to conform to the then-current standards and specifications of "MARBLE SLAB CREAMERY" restaurants, and will complete the upgrading and other requirements within the time specified by Franchisor; but that the transferee franchisee will not be required to upgrade the Restaurant if Franchisee has refurbished the Restaurant, in accordance with the provisions of Section 5.21, within the 5 year period immediately preceding the date on which Franchisee notifies Franchisor of the proposed transfer;
- 12.2.3.10 Franchisee will remain liable for all of the obligations to Franchisor in connection with the Restaurant before the effective date of the transfer and will execute any and all instruments reasonably requested by Franchisor to evidence such liability;
Source: Item 22 — CONTRACTS (FDD page 101)
What This Means (2025 FDD)
According to Marble Slab Creamery's 2025 Franchise Disclosure Document, the transferee bears the expense of upgrading the restaurant to meet the current standards and specifications. Specifically, in the context of a franchise transfer, the new franchisee (transferee) is generally responsible for bringing the Marble Slab Creamery location up to current brand standards. This includes upgrades and renovations to conform to the latest image and operational requirements.
However, there's an exception: if the existing franchisee (transferor) has already refurbished the restaurant within the five years immediately preceding the transfer notification, the transferee is not required to perform another upgrade. This provision aims to prevent unnecessary financial burdens on the transferee when the restaurant is already up-to-date.
In the context of renewing a franchise agreement, the franchisee is responsible for the renovation and modernization of the restaurant premises to reflect the then-current standards and image of the Marble Slab Creamery system. This includes renovations to signs, furnishings, fixtures, and decor. However, this is not required if the franchisee has refurbished the restaurant within the 5 years immediately preceding the end of the applicable renewal term, according to section 5.21.