What is the duration of the first and second renewal terms for a Marble Slab Creamery franchise agreement?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
| "First Renewal Term": | 10 years | | "Second Renewal Term": | 10 years |
2.1 Except as otherwise provided herein and subject to Section 13, the term ("Term") of this Agreement will commence on the Effective Date and expire 15 years from the Effective Date.
2.2 Subject to the conditions contained in Section 2.3, at the expiration of the Term, Franchisee shall have the right (the "Renewal Right") to enter into a new franchise agreement in the form then generally being offered to prospective "MARBLE SLAB CREAMERY" franchisees (the "Renewal Franchise Agreement") for a period equal to the First Renewal Term, which Renewal Franchise Agreement shall likewise grant Franchisee the right to enter into one additional Renewal Franchise Agreement for a period equal to the Second Renewal Term. Franchisee acknowledges that the weekly royalty fee and advertising fund contributions payable thereunder shall be at the rates then applicable to new franchisees. The term of each Renewal Franchise Agreement shall commence upon the date of expiration of the Term hereof or the expiration of the First Renewal Term, as applicable;
2.3.1 Franchisee will give Franchisor written notice (the "Renewal Notice") of Franchisee's election to renew not less than 6 months nor more than 12 months before the end of the initial term or any subsequent renewal term;
2.3.2 Franchisee will make or provide for, in a manner satisfactory to Franchisor, such renovation and modernization of the Restaurant premises as Franchisor may reasonably require, including, without limitation, renovation of signs, furnishings, fixtures, and decor, to reflect the thencurrent standards and image of the System; but that such renovation and modernization will not be required if Franchisee has refurbished the Restaurant, in accordance with the provisions of Section 5.21 hereof, within the 5 years immediately preceding the end of the applicable renewal term;
2.3.3 Franchisee will not be in material default of any provision of this Agreement, any amendment hereof or successor hereto, or any other agreement between Franchisee and Franchisor or its Affiliates; and Franchisee will have substantially complied with all the terms and conditions of such agreements during the terms thereof;
2.3.4 Franchisee will have satisfied all monetary obligations owed by Franchisee to Franchisor and its Affiliates and will have timely met those obligations throughout the term of this Agreement;
2.3.5 Franchisee will present satisfactory evidence that Franchisee has the right to remain in possession of the Accepted Location for the duration of the renewal term or, in the alternative, has prior to the expiration of the Term obtained Franchisor's approval of a new location and lease for the Restaurant which approval Franchisor may grant or withhold in its sole discretion**;**
Source: Item 22 — CONTRACTS (FDD page 101)
What This Means (2025 FDD)
According to Marble Slab Creamery's 2025 Franchise Disclosure Document, the initial franchise agreement term is for 15 years. If a franchisee meets certain conditions, they have the option to renew their franchise agreement. The first renewal term is for 10 years, and if the franchisee meets the renewal requirements again at the end of the first renewal term, they have the option to renew for a second term of 10 years.
To exercise the renewal right, a Marble Slab Creamery franchisee must provide written notice to the franchisor between 6 and 12 months before the end of the current term. The franchisee must also renovate and modernize the restaurant premises to meet the current standards of the Marble Slab Creamery system, unless the restaurant has been refurbished within the 5 years immediately preceding the end of the renewal term.
Additionally, the franchisee must not be in material default of any agreement with Marble Slab Creamery and must have substantially complied with all agreement terms. All monetary obligations to Marble Slab Creamery and its affiliates must be satisfied and have been met in a timely manner throughout the agreement term. The franchisee must also provide evidence that they have the right to remain in possession of the location for the renewal term or have obtained approval for a new location.