Can Marble Slab Creamery change the payment date for royalties, and if so, under what conditions?

According to Marble Slab Creamery's 2025 Franchise Disclosure Document, Marble Slab Creamery retains the right to modify the royalty payment due date. The FDD states that Marble Slab Creamery reserves "the right to change the time when you must pay the Royalty to us at any time in our absolute discretion." This means that Marble Slab Creamery has the authority to alter when franchisees are required to submit their royalty payments.

This provision grants Marble Slab Creamery significant flexibility in managing its cash flow and financial operations. For a franchisee, this could mean having to adjust their own financial planning and budgeting to accommodate a change in the royalty payment schedule. It's important to note that the FDD does not specify any limitations or conditions on Marble Slab Creamery's ability to make such changes, indicating that the decision is entirely at their discretion.

Prospective franchisees should consider the implications of this clause and inquire about the likelihood and potential frequency of changes to the royalty payment schedule. Understanding Marble Slab Creamery's historical practices and future expectations regarding payment dates can help franchisees better prepare for and manage their financial obligations. While such a clause is not uncommon in franchise agreements, the lack of specific constraints underscores the importance of due diligence and open communication with the franchisor.