Can Marble Slab Creamery's franchisor or its affiliates profit from franchisee purchases and leases?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.19 Franchisor and/or its Affiliates may derive revenue and profit based on Franchisee's purchases and leases, including from charging Franchisee for products and services that Franchisor or its Affiliates provide to Franchisee.
Franchisor and/or its Affiliates may derive revenue and other material consideration, from promotional allowances, volume discounts and other payments by suppliers that Franchisor designates, approves or recommends for some or all of Franchisor's franchises.
Franchisor and its Affiliates may collect or receive rebates, allowances, credits or other consideration in the form of cash or services or otherwise from suppliers based on purchases or sales by Franchisee.
Franchisor and its Affiliates may retain for itself or themselves, or use as it or they deem appropriate, any or all such cash or non-cash rebates, allowances, credits or other consideration.
Source: Item 22 — CONTRACTS (FDD page 101)
What This Means (2025 FDD)
According to Marble Slab Creamery's 2025 Franchise Disclosure Document, the franchisor and its affiliates may indeed derive revenue and profit from franchisee purchases and leases. This includes charging franchisees for products and services that Marble Slab Creamery or its affiliates provide.
Furthermore, Marble Slab Creamery and its affiliates may also receive revenue in the form of promotional allowances, volume discounts, and other payments from suppliers that the franchisor designates, approves, or recommends for its franchises. They can also collect rebates, allowances, credits, or other consideration from suppliers based on franchisee purchases or sales.
Importantly, the FDD states that Marble Slab Creamery and its affiliates have the right to retain or use any or all of these cash or non-cash rebates, allowances, credits, or other forms of consideration as they see fit. This arrangement is common in franchising, where franchisors often negotiate deals with suppliers and share in the benefits derived from the collective purchasing power of the franchise system.