What expenses incurred by the Manager in connection with the Marble Slab Creamery's business will be reimbursed by the Company?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.3 Owner shall pay all of the Operating Expenses, as hereinafter defined, incurred in connection with the operation of the Restaurant. As used herein, "Operating Expenses" shall mean and include any and all expenses incurred in connection with the operation of the Restaurant, including but not limited to (i) the fee set forth in Section 5.1 of this Agreement; (ii) all royalties and other charges due to FBNA; (iii) food, supplies, inventory, materials, consumables, paper products and other products utilized in the operation of the Restaurant, (iv) payroll, benefit costs and other employee expenses, including the cost of store manager(s), assistant manager(s) and staff; (v) utilities, trash removal, water and sewer charges, and similar expenses, (vi) advertising and promotional costs, (vii) rent, common area charges, property taxes and other "triple net" charges and all other occupancy charges related to the Restaurant, (viii) insurance premiums and other insurance costs, (xi) lease payments or loan payments for Restaurant equipment, (x) permit and license fees, and fees, taxes or charges incurred to comply with state or local regulations, (xii) professional fees and expenses incurred in connection with the operation of the Restaurant, and (xii) a reasonable reserve for contingencies and working capital.
Source: Item 23 — RECEIPT (FDD pages 101–346)
What This Means (2025 FDD)
The 2025 Marble Slab Creamery FDD states that the Owner, not Marble Slab Creamery, is responsible for paying all operating expenses related to the restaurant. These operating expenses include a wide range of costs, such as franchise fees, royalties, food and supplies, employee expenses (including manager salaries and benefits), utilities, advertising, rent, insurance, equipment lease payments, permits and licenses, professional fees, and a reasonable reserve for contingencies and working capital.
This means that a Marble Slab Creamery franchisee, as the Owner, must cover all costs associated with running the restaurant. The Manager, who is considered an independent contractor, will not be reimbursed by Marble Slab Creamery for any expenses incurred. Instead, the franchisee is responsible for providing the Manager with the necessary resources and covering all operating expenses.
Prospective franchisees should carefully consider these financial obligations and ensure they have sufficient capital to cover all operating expenses. Understanding the full scope of these costs is crucial for assessing the profitability and sustainability of a Marble Slab Creamery franchise.