How is the continuing royalty fee for a Marble Slab Creamery franchise calculated?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
| "Franchisee": | |||||
|---|---|---|---|---|---|
| "Site Selection Area": | |||||
| "Accepted Location": | |||||
| "Effective Date": | , 202 | "Initial Fee": | $ | ||
| "Initial Operating Partner": | |||||
| "NAF Percentage": 2% | "Royalty Rate": | 6% | "Local Advertising Percentage": 2% |
Source: Item 22 — CONTRACTS (FDD page 101)
What This Means (2025 FDD)
According to the 2025 Marble Slab Creamery FDD, the royalty rate is listed in a table of definitions. The royalty rate is 6% of gross sales. Franchisees also pay 2% of gross sales for the NAF (National Advertising Fund) percentage and 2% of gross sales for the local advertising percentage.
For a prospective franchisee, this means that on top of the initial franchise fee and other startup costs, Marble Slab Creamery franchisees must pay 6% of their gross sales as a royalty fee to Marble Slab Creamery. They must also pay 2% of gross sales to the NAF and 2% of gross sales to local advertising. These ongoing fees are a significant factor in the profitability of the franchise and should be carefully considered.
It is typical in the franchise industry for franchisors to charge a continuing royalty fee based on a percentage of gross sales. The specific percentage can vary depending on the brand, industry, and the services provided by the franchisor. Franchisees should carefully evaluate the royalty structure and advertising fees to understand the ongoing costs of operating the franchise.