How does the Marble Slab Creamery franchise agreement define 'Equity'?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
r documents Franchisor may reasonably request, and any amendments thereto.
- 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.
- 5.1.3 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.
- 5.1.4 Franchisee will maintain a current list of all owners of record and all beneficial owners of any class of voting securities or securities convertible into voting securities of Franchisee and will furnish the list to Franchisor upon request.
Source: Item 22 — CONTRACTS (FDD page 101)
What This Means (2025 FDD)
Based on the 2025 Marble Slab Creamery Franchise Disclosure Document, the term 'Equity' is used in the context of corporate and limited liability company franchisees. While the FDD does not provide a specific definition of 'Equity,' it outlines certain requirements related to equity securities.
For corporate franchisees, Marble Slab Creamery requires that they maintain stop transfer instructions against the transfer of any equity securities on their records. Additionally, any securities issued must have a printed legend stating that the transfer of such stock is subject to the terms and conditions of the Franchise Agreement. The franchisee must also maintain and furnish a current list of all owners of record and beneficial owners of any class of voting securities.
Similarly, for franchisees that are limited liability companies, Marble Slab Creamery mandates maintaining stop transfer instructions against the transfer of equity securities and including a legend on issued securities indicating transfer restrictions under the Franchise Agreement. These stipulations ensure that Marble Slab Creamery maintains control over the ownership and transfer of franchise interests, safeguarding the brand and the franchise system.