What constitutes a breach of the Marble Slab Creamery agreement regarding member withdrawal, and what are the consequences?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
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- I will hold in strict confidence all information designated by the Franchisor or the Franchisee as confidential, and I will disclose and/or use the confidential information only in connection with my duties as required by my position with the Franchisee. My undertaking not to disclose confidential information is a condition of my position with the Franchisee, and continues even after I cease to be in that position.
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- While in my position with the Franchisee, I will not do anything which may injure the Franchisee or the Franchisor, such as: (a) divert or attempt to divert actual or prospective customers to a competitor business selling competitive services; (b) employ or seek to employ anyone employed by the Franchisee, the Franchisor or other franchisees of the Franchisor; or (c) cause or encourage any employee of the Franchisee, the Franchisor or other franchisees of the Franchisor to leave his or her employment, other than in the normal course of my duties with the Franchisee.
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- While in my position with the Franchisee, and for two (2) years after I cease to be in that position, I will not own, operate, engage in, or have any interest in a restaurant similar to a Marble Slab Creamery restaurant and which is located, or intended to be located, within a five mile radius of Franchisee's restaurant or any other Marble Slab Creamery restaurant. This restriction does not apply to my ownership of less than a five percent (5%) beneficial interest in the outstanding securities of any publicly-held corporation.
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- The Franchisor is a third-party beneficiary of this Agreement and may enforce it, solely and/or jointly with the Franchisee. I am aware that my violation of this Agreement will cause the Franchisor and the Franchisee irreparable harm; therefore, I acknowledge and agree that the Franchisor and/or the Franchisee may apply for the issuance of an injunction preventing me from violating this Agreement, and I agree to pay the Franchisor and the
Source: Item 23 — RECEIPT (FDD pages 101–346)
What This Means (2025 FDD)
The 2025 Marble Slab Creamery Franchise Disclosure Document outlines several actions that would constitute a breach of agreement, specifically concerning a franchisee employee's conduct and confidentiality. An employee agreeing to the terms laid out in Item 23 is prohibited from divulging confidential information, soliciting employees, or diverting customers. These obligations extend even after the employee leaves their position with the franchisee.
Specifically, an employee cannot disclose confidential information, solicit or attempt to employ individuals working for the franchisee, Marble Slab Creamery, or other franchisees, or encourage employees to leave their employment. Furthermore, for two years after leaving their position, the employee is barred from owning, operating, or having any interest in a similar restaurant within a five-mile radius of the franchisee's or any other Marble Slab Creamery restaurant. A minor exception exists for owning less than 5% of a publicly-held corporation's securities.
The consequences of breaching these conditions are significant. Marble Slab Creamery is a third-party beneficiary of the agreement and can enforce it jointly or independently with the franchisee. A violation would cause irreparable harm, allowing Marble Slab Creamery and/or the franchisee to seek an injunction to prevent further breaches. The employee also agrees to cover the legal costs incurred by Marble Slab Creamery and the franchisee in enforcing the agreement. This highlights the importance of franchisees ensuring their employees understand and adhere to these restrictions to protect the Marble Slab Creamery brand and business interests.