Where will disputes related to the Marble Slab Creamery franchise agreement be arbitrated?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| franchise is terminated or expires | competitive business for 2 years within 5 miles of the location of your Restaurant or any other Restaurant operated or intended to be operated under the Marks. | ||
| s. | Modification of the agreement | Section 20 | Except for changes we can make, no amendment without mutual written consent |
| t. | Integration/merger clause | Section 25 | Only terms of Franchise Agreement are binding (subject to state law). Any representations or promises outside of the disclosure document and franchise agreement may not be enforceable. |
| u. | Dispute resolution by arbitration or mediation | Section 21 | Subject to state law, except for certain claims, all disputes must be arbitrated in the county in which our headquarters are located (currently Los Angeles, California) |
| v. | Choice of forum | Section 21 | Subject to state law, arbitration in the county in which our headquarters is located (currently Los Angeles, California) |
| w. | Choice of law | Section 21 | California; if a provision is unenforceable under California law, then laws of the state in which the Restaurant is located apply to that provision. Any dispute between the parties must be brought or instituted within 1 year from the date of discovery of the conduct or event that is the basis of the legal action or proceeding. |
| Provision | Section in Multi- Unit Restaurant Agreement | Summary subject to notice and cure provisions in the other agreement. | |
| i. | Your obligations on termination/non- renewal | Section 4.3 | You will have no further right to develop or operate additional Restaurants which are not, at the time of termination, the subject of a then existing Franchise Agreement between you and us. You may continue to own and operate all Restaurants pursuant to then- existing Franchise Agreements, |
| j. | Assignment of contract by MSC | Section 7.1 | No restriction on our right to assign. |
| k. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 74–85)
What This Means (2025 FDD)
According to Marble Slab Creamery's 2025 Franchise Disclosure Document, disputes are subject to arbitration in the county where the company's headquarters are located. Currently, the headquarters are in Los Angeles, California. This applies to disputes arising from the Franchise Agreement, the Multi-Unit Restaurant Agreement, and the Management Agreement. The LLC Operating Agreement also specifies that disputes must be arbitrated in Los Angeles County, California. However, all of these stipulations are subject to state law.
This means that if a franchisee has a dispute with Marble Slab Creamery, they will likely need to travel to Los Angeles for arbitration proceedings, which could increase the cost of resolving the dispute. Franchisees should be aware of this requirement and factor in potential travel and legal costs when considering a franchise opportunity with Marble Slab Creamery.
It's important to note that while California law generally governs the agreements, there are exceptions. For instance, the Multi-Unit Restaurant Agreement specifies that California law governs except with respect to Non-Competition Covenants. Additionally, the LLC Operating Agreement specifies that Delaware law applies. Franchisees should carefully review the choice of law provisions in each agreement to understand which state's laws will govern specific aspects of their relationship with Marble Slab Creamery.