What are the Marble Slab Creamery franchisee's obligations upon termination or non-renewal of the Management Agreement?
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 |
| t. | Integration/merger clause | Section 25 | Only terms of Franchise Agreement are binding (subject to state law). Any representations or promises outside of the disclosure document and franchise agreement may not be enforceable. |
| u. | Dispute resolution by arbitration or mediation | Section 21 | Subject to state law, except for certain claims, all disputes must be arbitrated in the county in which our headquarters are located (currently Los Angeles, California) |
| v. | Choice of forum | Section 21 | Subject to state law, arbitration in the county in which our headquarters is located (currently Los Angeles, California) |
| w. | Choice of law | Section 21 | California; if a provision is unenforceable under California law, then laws of the state in which the Restaurant is located apply to that provision. Any dispute between the parties must be brought or instituted within 1 year from the date of discovery of the conduct or event that is the basis of the legal action or proceeding. |
| Provision | Section in Multi- Unit Restaurant Agreement | Summary subject to notice and cure provisions in the other agreement. | |
| i. | Your obligations on termination/non- renewal | Section 4.3 | You will have no further right to develop or operate additional Restaurants which are not, at the time of termination, the subject of a then existing Franchise Agreement between you and us. You may continue to own and operate all Restaurants pursuant to then- existing Franchise Agreements, |
| j. | Assignment of contract by MSC | Section 7.1 | No restriction on our right to assign. |
| k. |
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, details regarding franchisee obligations upon termination or non-renewal of the Management Agreement are not available in the provided excerpts. The excerpts do contain information regarding termination of other agreements, such as the Multi-Unit Restaurant Agreement and the LLC Operating Agreement. However, the specific obligations related to the Management Agreement are not detailed.
For the Multi-Unit Restaurant Agreement, upon termination or non-renewal, the franchisee will not have the right to develop or operate additional restaurants beyond those already under existing Franchise Agreements. They can continue operating restaurants under those existing agreements.
For the LLC Operating Agreement, the manager is responsible for winding up the affairs of the LLC, which includes paying all debts and distributing or liquidating any remaining assets to the members. Since the FDD excerpts do not specify the obligations related to the Management Agreement, it is important for a prospective franchisee to ask Marble Slab Creamery for a comprehensive list of obligations upon termination or non-renewal of the Management Agreement to fully understand their responsibilities.