For Marble Slab Creamery co-branded locations, what is included in the definition of 'Net Sales'?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
siness. Further, Franchisor, on its own behalf and on behalf of the Co-brand(s), as applicable, may provide to Franchisee, from time to time as Franchisor deems appropriate, further advice and/or written materials concerning the operation of the Business as a co-branded food service business, including
new developments and improvements in restaurant equipment, food products, packaging, and preparation. Franchisee hereby re-affirms its obligation to operate the Business in strict compliance with the Co-branded Manuals, as amended from time to time.
4. Business Net Sales.
- (a) Franchisee, Franchisor and the Co-brand(s) acknowledge and agree that the defined term "Net Sales" (or similar term) in the Lead Franchise Agreement shall be deemed to include any and all revenue and gross sales price from the sale of food, beverages, merchandise and/or other products and services offered, sold or rendered under the Co-branded Marks, the trademarks, service marks, logos, trade names and other similar indicia licensed under the Lead Franchise Agreement, and all food, beverages, merchandise and/or products and services offered, sold or rendered by Franchisee from or at the Business. Franchisor and the Co-brand(s) shall be responsible for allocating amongst each other, the respective portions of Franchisee's Net Sales that they jointly deem to be attributable to the sale of Franchisor's and/or the Co-brand(s)' food, beverages, merchandise and/or products and services sold or rendered by Franchisee from or at the Business.
Source: Item 22 — CONTRACTS (FDD page 101)
What This Means (2025 FDD)
According to Marble Slab Creamery's 2025 Franchise Disclosure Document, when a franchisee operates a co-branded store, the definition of "Net Sales" includes all revenue and gross sales price from the sale of food, beverages, merchandise, and other products and services offered under the co-branded marks. This includes items sold under the trademarks, service marks, logos, trade names, and other similar identifiers licensed under the Lead Franchise Agreement. Essentially, it encompasses all sales made by the franchisee at or from the co-branded business.
Marble Slab Creamery, along with the Co-brand Licensor, will allocate the respective portions of the franchisee's Net Sales that they jointly deem attributable to the sale of Marble Slab Creamery's and/or the Co-brand's food, beverages, merchandise, products, and services. This allocation process ensures that each party receives credit for the sales generated by their respective brands within the co-branded location.
The agreement also specifies that the franchisee's payment of royalties and national advertising fees to Marble Slab Creamery, based on the total combined Net Sales of the business, satisfies the franchisee's royalty and national advertising fee obligations under both the Lead Franchise Agreement and the Co-branded Franchise Agreement(s). This means that the franchisee makes a single payment covering both brands, simplifying the payment process.