For Marble Slab Creamery co-branded locations, what sales are 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 the 2025 Marble Slab Creamery FDD, when a Marble Slab Creamery location is co-branded with another concept, the definition of 'Net Sales' includes all revenue and gross sales from food, beverages, merchandise, and other products/services sold under the co-branded marks. This includes items sold under trademarks, service marks, logos, trade names, and similar identifiers licensed under the Lead Franchise Agreement, as well as all food, beverages, merchandise, and products/services offered by the franchisee at the business location.
Marble Slab Creamery, along with the Co-brand Licensor, will allocate the portions of the franchisee's Net Sales that they deem attributable to each brand's products and services. This allocation process is crucial for determining royalty and advertising fee obligations for each party.
The FDD states that the franchisee's payment of royalties and national advertising fees (or similar contributions) based on the total combined Net Sales of the business will satisfy the franchisee's obligations under both the Lead Franchise Agreement and the Co-branded Franchise Agreement(s). This means that a single payment covers the financial obligations to both Marble Slab Creamery and the co-brand, simplifying the payment process for the franchisee.