Does the definition of 'Entity' for a Marble Slab Creamery franchise include limited liability companies?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
5.2 A Franchisee which is a limited liability company will comply, except as otherwise approved in writing by Franchisor, with the following requirements throughout the term of this Agreement:
5.2.1 Franchisee will furnish Franchisor with its Articles of Organization, Certificate of Formation, Operating Agreement, Limited Liability Company Agreement, other governing documents, any other documents Franchisor may reasonably request, and any amendments thereto.
5.2.2 Franchisee will confine its activities exclusively to operating the Restaurant and any other "MARBLE SLAB CREAMERY" restaurants owned and operated by Franchisee pursuant to a validly existing franchise agreement.
5.2.3 Franchisee will maintain stop transfer instructions against the transfer on its records of any Equity securities; and will issue no securities upon the face of which does not legibly and conspicuously appear a printed legend in the form reasonably prescribed by Franchisor stating that the transfer of such stock is subject to the terms and conditions of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 101)
What This Means (2025 FDD)
According to Marble Slab Creamery's 2025 Franchise Disclosure Document, the definition of 'Entity' includes limited liability companies. The Franchise Agreement explicitly addresses requirements for franchisees that are limited liability companies.
Specifically, Marble Slab Creamery requires a franchisee that is a limited liability company to furnish the franchisor with its Articles of Organization, Certificate of Formation, Operating Agreement, Limited Liability Company Agreement, other governing documents, any other documents Marble Slab Creamery may reasonably request, and any amendments to those documents. This indicates that Marble Slab Creamery anticipates and allows limited liability companies to be franchisees.
Additionally, Marble Slab Creamery requires that the limited liability company confine its activities exclusively to operating the Marble Slab Creamery Restaurant and any other Marble Slab Creamery restaurants owned and operated by Franchisee pursuant to a validly existing franchise agreement. The company must also maintain stop transfer instructions against the transfer on its records of any Equity securities and will issue no securities upon the face of which does not legibly and conspicuously appear a printed legend in the form reasonably prescribed by Franchisor stating that the transfer of such stock is subject to the terms and conditions of this Agreement.