Who benefits from and is bound by the Marble Slab Creamery franchise agreement release?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS GENERAL RELEASE ("Release") is executed onby | |
|---|---|
| ("Franchisee"), ("Guarantors"), | |
| and ("Transferee") as a condition of (1) the transfer of the | |
| Marble Slab Creamery Franchise Agreement | dated between Marble Slab |
| Franchising, LLC ("MSF") and Franchisee ("Franchise Agreement"); or (2) the execution of a | |
| successor Franchise Agreement by Franchisee and MSF. (If this Release is executed under the | |
| conditions set forth in (2) above, all references in this Release to "Transferee" should be ignored.) |
Source: Item 23 — RECEIPT (FDD pages 101–346)
What This Means (2025 FDD)
According to the 2025 Marble Slab Creamery Franchise Disclosure Document, the general release within the franchise agreement is executed by the franchisee, any guarantors, and any transferee. This release is a prerequisite for either the transfer of the existing Marble Slab Creamery Franchise Agreement between Marble Slab Franchising, LLC (MSF) and the franchisee, or the execution of a new franchise agreement between the franchisee and MSF. If the release is related to a new agreement, references to the 'Transferee' are disregarded.
In practical terms, this means that if a franchisee wants to sell their Marble Slab Creamery franchise to someone else (the transferee), or if they are renewing their franchise agreement, all parties involved must sign a release. This release likely covers any potential claims or liabilities that could arise from the previous franchise relationship or the transfer of ownership. Guarantors, who may have provided financial backing or assurances for the franchisee, are also bound by this release.
However, addenda to the Marble Slab Creamery franchise agreement for Maryland and California franchisees include stipulations that the release does not apply to liability under the Maryland Franchise Registration and Disclosure Law or waiving rights under the California Franchise Investment Law and Franchise Relations Act. Therefore, franchisees in these states retain certain legal rights despite signing a general release. Prospective franchisees should carefully review these addenda and consult with legal counsel to understand the full scope of the release and their rights under applicable state laws.