How does the Marble Slab Creamery franchise agreement define 'Competitive Activities'?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
5.1.2 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.
5.2.2 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.
Source: Item 22 — CONTRACTS (FDD page 101)
What This Means (2025 FDD)
Based on the 2025 Marble Slab Creamery Franchise Disclosure Document, the franchise agreement specifies that franchisees must confine their business activities exclusively to operating their Marble Slab Creamery restaurant and any other Marble Slab Creamery restaurants they own under a valid franchise agreement. This requirement applies to both corporate and limited liability company franchisees, ensuring that their primary focus remains on the development and operation of Marble Slab Creamery locations.
For a corporation, the franchisee must furnish Marble Slab Creamery with its Articles of Incorporation, By-laws, governing documents, and any amendments. They must also maintain stop transfer instructions against the transfer of any equity securities and include a legend on any securities stating that their transfer is subject to the terms of the franchise agreement. Similarly, a limited liability company must provide its Articles of Organization, Certificate of Formation, Operating Agreement, Limited Liability Company Agreement, and any amendments to Marble Slab Creamery.
This restriction prevents franchisees from engaging in other business ventures that could potentially compete with or detract from their Marble Slab Creamery operations. It ensures that franchisees dedicate their resources and attention to growing the Marble Slab Creamery brand and maintaining its standards. Prospective franchisees should be aware of this exclusivity clause, as it limits their ability to pursue other business opportunities during the term of their franchise agreement.