factual

What constitutes Force Majeure for a Marble Slab Creamery franchisee, and how does it affect abandonment?

Marble_Slab_Creamery Franchise · 2025 FDD

Answer from 2025 FDD Document

terminate this Agreement and all rights granted hereunder, without affording Franchisee any opportunity to cure the default, effective immediately upon receipt of notice by Franchisee, upon the occurrence of any of the following events:

  • 13.2.1 If Franchisee fails to open the Restaurant in accordance with Sections 5.8 through 5.12.
  • 13.2.2 If Franchisee shall abandon the Restaurant. For purposes of this Agreement, "abandon" shall refer to (i) Franchisee's failure, at any time during the Term, to keep the Restaurant open and operating for business for a period of 5 consecutive days, except as provided in the Manual, (ii) Franchisee's failure to keep the Restaurant open and operating for any period after which it is not unreasonable under the facts and circumstances for Franchisor to conclude that Franchisee does not intend to continue to operate the Restaurant at the Location, unless such failure to operate is due to Force Majeure (subject to Franchisee's continuing compliance with this Agreement), (iii) failure to actively and continuously maintain and answer the telephone listed by Franchisee for the Restaurant solely with the "MARBLE SLAB CREAMERY" name; (iv) the loss of possession of the Accepted Location; or (v) closing of the Restaurant required by Applicable Law if such closing was not the result of a violation of this Agreement by Franchisor. Notwithstanding the foregoing, if any "abandonment" results from a Governmental Authority's exercise of the power of eminent domain, or if, through no fault of Franchisee, the premises are damaged or destroyed, then Franchisee will have 30 days after

either such event in which to apply for Franchisor's approval to relocate or reconstruct the premises, which approval will not be unreasonably withheld.

  • 13.2.3 If Franchisee (or, if Franchise is other than an individual, any of Franchisee's Owners) is convicted of a felony, a crime involving moral turpitude, or any other crime or offense that Franchisor believes is reasonably likely to have an adverse effect on the System, the Proprietary Marks, the goodwill associated therewith, or Franchisor's interest therein.

Source: Item 22 — CONTRACTS (FDD page 101)

What This Means (2025 FDD)

According to Marble Slab Creamery's 2025 Franchise Disclosure Document, a Force Majeure event can excuse a franchisee's failure to keep their restaurant open, which would normally constitute abandonment and a default of the franchise agreement. To claim Force Majeure, the franchisee must notify Marble Slab Creamery in writing within 5 days of the event's commencement. This notice must include the words "Force Majeure," describe the event's nature and extent, and explain how it impacts the franchisee's performance.

Following the initial notice, the franchisee must provide continuous weekly updates to Marble Slab Creamery regarding their progress in addressing and overcoming the Force Majeure event. They must also notify Marble Slab Creamery immediately upon the cessation of the event and provide any other information requested by the franchisor. Failure to provide timely notice or updates will result in a waiver of the right to claim Force Majeure.

If a Marble Slab Creamery franchisee experiences an event that could be considered Force Majeure, such as a natural disaster or government regulation that prevents them from operating, it is critical that they follow the notification and reporting procedures outlined in the franchise agreement. Otherwise, the franchisee risks being found in default of the agreement for abandonment if the restaurant is closed for more than 5 consecutive days. This could ultimately lead to termination of the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.