After the Marble Slab Creamery franchise is terminated or expires, what is the geographic radius of the non-compete restriction?
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 |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 74–85)
What This Means (2025 FDD)
According to the 2025 Marble Slab Creamery FDD, if the franchise agreement is terminated or expires, the franchisee is subject to a non-compete restriction. This restriction prevents the franchisee from engaging in a competitive business for a period of 2 years within a 5-mile radius of their former Marble Slab Creamery location or any other Marble Slab Creamery location.
This means that after leaving the Marble Slab Creamery system, a former franchisee cannot open, operate, advise, or have a financial interest in a similar restaurant within that 5-mile radius for two years. This restriction is designed to protect Marble Slab Creamery's market share and brand recognition in the area. The franchisor must provide express written consent to the franchisee if they wish to engage in a similar business within the restricted area and timeframe.
It is important for prospective franchisees to carefully consider this non-compete clause, as it could significantly limit their business options after the franchise agreement ends. Franchisees should evaluate the potential impact of this restriction on their future plans and seek legal counsel to fully understand their rights and obligations.