When does Marble Slab Creamery become liable to the landlord for lease obligations?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor shall not become liable to Landlord for the performance of any obligations of the tenant under the Lease, notwithstanding its issuance of an Election Notice, unless and until Franchisor shall have obtained possession of the Property, and in no event shall Franchisor be liable to Landlord for any obligations which accrued under the Lease prior to the date Franchisor so obtains possession.
Source: Item 23 — RECEIPT (FDD pages 101–346)
What This Means (2025 FDD)
According to Marble Slab Creamery's 2025 Franchise Disclosure Document, Marble Slab Creamery does not become liable to the landlord for the performance of any obligations of the tenant under the lease until Marble Slab Creamery has obtained possession of the property. Even then, Marble Slab Creamery is not liable to the landlord for any obligations that accrued under the lease before the date Marble Slab Creamery obtains possession.
This means that a franchisee's default on lease obligations does not automatically make Marble Slab Creamery liable. The landlord must provide Marble Slab Creamery with written notice of any default and allow Marble Slab Creamery a 30-day period to cure the default. Marble Slab Creamery has the right, but not the obligation, to cure any default claimed by the landlord.
This clause protects Marble Slab Creamery from being held responsible for a franchisee's prior lease violations. However, once Marble Slab Creamery takes possession of the property, it assumes responsibility for ongoing lease obligations from that point forward. This arrangement provides some security to the landlord while limiting Marble Slab Creamery's liability to the period after it gains possession.