What constitutes an Event of Default by a Marble Slab Creamery customer?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
Each of following shall constitute an "Event of Default" by Customer:
(a) Non-payment when due of any amount due and payable under this Agreement;
(b) Upon thirty (30) days prior written notice of breach from MSF, Customer's breach of any of its obligations under this Agreement (except for Customer's payment obligations under this Agreement) that remains uncured after expiration of such notice period;
(c) Customer becomes insolvent or commits an act of bankruptcy under the United States Bankruptcy Act, or shall file or have filed against it, voluntarily or involuntarily, a petition in bankruptcy or for reorganization or for the adoption of an arrangement or plan under the United States Bankruptcy Code or shall procure or suffer the appointment of a receiver for any substantial portion of its properties, or initiates or have initiated against it, voluntarily or involuntarily, any act, process or proceeding under any insolvency law or other statute or law providing for the modification or adjustment of the rights of creditors; or
(d) Customer fails to observe or perform any covenant or agreement binding on Customer under any other agreements it has with MSF within any applicable cure period.
Source: Item 23 — RECEIPT (FDD pages 101–346)
What This Means (2025 FDD)
According to the 2025 Marble Slab Creamery FDD, an Event of Default by the Customer can occur under several circumstances. These include non-payment of any amount due under the agreement, a breach of obligations that remains uncured 30 days after written notice from MSF (excluding payment obligations), or if the customer becomes insolvent or commits an act of bankruptcy.
Additionally, an Event of Default occurs if the customer files or has filed against them a petition in bankruptcy, reorganization, or arrangement under the United States Bankruptcy Code, or if a receiver is appointed for a substantial portion of their properties. It also includes initiating or having initiated against them any act, process, or proceeding under any insolvency law that modifies creditor rights.
Finally, failure to observe or perform any covenant or agreement binding on the Customer under any other agreements with MSF, within any applicable cure period, also constitutes an Event of Default. These Events of Default are significant because they allow MSF to terminate the agreement, stop performing services, declare all amounts immediately due, and/or require the return of leased equipment.