What constitutes a material default that would prevent a Marble Slab Creamery franchise assignment?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
l not, as determined in Franchisor's sole discretion, materially and adversely affect any other Marble Slab Creamery restaurant, (v) the relocated Restaurant must be open and operating within 120 days from the closure of the original restaurant, (vi) Franchisee has fully performed and complied with each provision of this
Agreement within the last three years prior to, and as of, the date Franchisor consents to such relocation (the "Relocation Request Date"), (vii) no event of default, or event which with the giving of notice and/or passage of time would constitute an event of default, exists as of the Relocation Request Date, and (viii) Franchisee pays Franchisor a relocation fee
Source: Item 22 — CONTRACTS (FDD page 101)
What This Means (2025 FDD)
Based on the 2025 Marble Slab Creamery Franchise Disclosure Document, a franchisee's ability to assign their franchise agreement can be impacted by defaults. Specifically, if an event of default, or an event that would become a default with notice or time, exists as of the date the franchisee requests relocation, the franchisor may not approve the franchise assignment. Additionally, the franchisee must have been in full compliance with the Franchise Agreement within the three years leading up to the relocation request date.
This means that a prospective Marble Slab Creamery franchisee needs to maintain compliance with all aspects of the franchise agreement to retain the option of assigning the franchise in the future. Any breaches, even minor ones that could be cured with time or notice, could jeopardize the ability to transfer the franchise to a new owner.
For a potential franchisee, this underscores the importance of understanding and adhering to the franchise agreement. It would be prudent to seek legal counsel to fully comprehend the implications of default and compliance on the ability to assign the franchise. Furthermore, it is important to maintain meticulous records to demonstrate compliance in the event of a potential sale or transfer.