What conditions must a Marble Slab Creamery franchisee meet to exercise their Renewal Right?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
e modified to conform to the Renewal Rights granted above; and (ii) provide that Franchisee must pay, in lieu of the Initial Fee, a renewal fee in an amount equal to forty percent (40%) of the then-current Initial Fee charged to new Marble Slab Creamery franchisees.
- 2.3 Franchisee's Renewal Right is conditioned upon Franchisee's fulfillment of each and all of the following conditions precedent:
- 2.3.1 Franchisee will give Franchisor written notice (the "Renewal Notice") of Franchisee's election to renew not less than 6 months nor more than 12 months before the end of the initial term or any subsequent renewal term;
- 2.3.2 Franchisee will make or provide for, in a manner satisfactory to Franchisor, such renovation and modernization of the Restaurant premises as Franchisor may reasonably require, including, without limitation, renovation of signs, furnishings, fixtures, and decor, to reflect the thencurrent standards and image of the System; but that such renovation and modernization will not be required if Franchisee has refurbished the Restaurant, in accordance with the provisions of Section 5.21 hereof, within the 5 years immediately preceding the end of the applicable renewal term;
- 2.3.3 Franchisee will not be in material default of any provision of this Agreement, any amendment hereof or successor hereto, or any other agreement between Franchisee and Franchisor or its Affiliates; and Franchisee will have substantially complied with all the terms and conditions of such agreements during the terms thereof;
- 2.3.4 Franchisee will have satisfied all monetary obligations owed by Franchisee to Franchisor and its Affiliates and will have timely met those obligations throughout the term of this Agreement;
- 2.3.5 Franchisee will present satisfactory evidence that Franchisee has the right to remain in possession of the Accepted Location for the duration of the renewal term or, in the alternative, has prior to the expiration of the Term obtained Franchisor's approval of a new location and lease for the Restaurant which approval Franchisor may grant or withhold in its sole discretion**;**
- 2.3.6 Franchisee will execute a general release, in a form prescribed by Franchisor, of any and all known and unknown claims against Franchisor and its Affiliates, and their respective officers, directors, shareholders, agents, and employees in their corporate and individual capacities;
Source: Item 22 — CONTRACTS (FDD page 101)
What This Means (2025 FDD)
According to the 2025 Marble Slab Creamery Franchise Disclosure Document, a franchisee has the right to renew their franchise agreement, subject to certain conditions. To exercise this Renewal Right, the franchisee must fulfill several requirements.
First, the franchisee must provide written notice of their intent to renew (the "Renewal Notice") to Marble Slab Creamery. This notice must be given no less than 6 months and no more than 12 months before the end of the current term, whether it's the initial term or a subsequent renewal term. Second, Marble Slab Creamery may require the franchisee to renovate and modernize the restaurant premises to meet the system's current standards. This includes renovations to signs, furnishings, fixtures, and decor. However, this renovation is not required if the franchisee has already refurbished the restaurant within the 5 years immediately preceding the end of the renewal term, according to Section 5.21 of the agreement.
Third, the franchisee must not be in material default of any provision of the Franchise Agreement or any other agreement with Marble Slab Creamery or its affiliates. They must also have substantially complied with all the terms and conditions of such agreements throughout their terms. Fourth, the franchisee must have satisfied all monetary obligations owed to Marble Slab Creamery and its affiliates and must have consistently met these obligations throughout the term of the agreement. Finally, the franchisee must provide satisfactory evidence that they have the right to remain in possession of the current location for the duration of the renewal term. Alternatively, they must obtain Marble Slab Creamery's approval for a new location and lease before the expiration of the term, with the understanding that Marble Slab Creamery may grant or withhold such approval at its sole discretion.
In addition to these conditions, the Renewal Franchise Agreement will be modified to conform to the renewal rights and will require the franchisee to pay a renewal fee. This fee is equal to forty percent (40%) of the then-current Initial Fee charged to new Marble Slab Creamery franchisees. These conditions ensure that franchisees seeking to renew are in good standing, maintain the brand's standards, and continue to meet their financial obligations.