Does Marble Slab Creamery grant franchisees an exclusive territory?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
"B" Section 10.3)
Item 12 TERRITORY
Multi-Unit Restaurant Agreement
Under the Multi-Unit Restaurant Agreement, we grant you the right to develop and operate a specified number of Restaurants at venues in a specified Development Area, either on a "Nonexclusive" basis, or on a "Protected Rights" basis. You will sign a separate Franchise Agreement for each Restaurant that you open pursuant to the Multi-Unit Restaurant Agreement.
If your Multi-Unit Restaurant Agreement provides for development on a non-exclusive basis, you will not receive an exclusive territory and we reserve all rights, including the right to own or operate and to franchise or license others to own or operate stores under the name "MARBLE SLAB CREAMERY®" and under any other trademarks, trade names, service marks, logotypes, insignias, trade dress and designs at any location whatsoever whether within or outside the Development Area. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
If we grant you the right to develop on a "Protected Rights" basis, we will not operate, or license to anyone else the right to operate, a "MARBLE SLAB CREAMERY®" "Traditional Restaurant" (defined below) at any venue other than a "Non-Traditional Venue/Excluded Venue" (defined below) in the Development Area during the term of your Multi-Unit Restaurant Agreement. A "Traditional Restaurant" is a business premises that exists primarily as a "MARBLE SLAB CREAMERY®" restaurant, excluding any "MARBLE SLAB CREAMERY®" restaurant at a Non-Traditional Venue/Excluded Venue, however, which Traditional Restaurant may also have other types of Franchisor-approved co-branded businesses located in it, but in such case the MARBLE SLAB CREAMERY restaurant is the primary business. A "Non-Traditional Venue/Excluded Venue" means a site, venue or location within another primary business or in conjunction with other businesses or at institutional settings, including, toll roads, highway travel plazas, hotels and motels, casinos and casino adjacent locations, airports, sports arena, stadiums, bus stations, train stations, theme parks, amusement facilities, military and other governmental facilities, movie theaters, hospitals, grocery stores, supermarkets, convenience stores, schools, college and university campuses, piers, gyms, offices or in-plant food service facilities, shopping mall food courts operated by a master concessionaire, and any site for which the lessor, owner or operator has indicated its intent to prefer or limit the operation of its food service facilities to a master concessionaire or contract food service provider.
However, we also expressly reserve certain rights (the "Reserved Rights") to operate and/or license others (which may include our affiliates) to own or operate (i) stores under the name "MARBLE SLAB CREAMERY®" and under any other trademarks, trade names, service marks, logotypes, insignias, trade dress and designs at any location outside the Development Area, (ii) stores and other facilities under the name "MARBLE SLAB CREAMERY®" and under any other trademarks, trade names, service marks, logotypes, insignias, trade dress and designs at Non-Traditional Venues at any location, and of any type whatsoever, within or outside the Development Area, and regardless of proximity to your Restaurants; (iii) facilities offering catering services and mobile units designed to service special events within and outside your Development Area, and (iv) stores and other systems operating under names other than "MARBLE SLAB CREAMERY®" or the other trademarks, trade names, service marks, logotypes, insignias, trade dress and designs
(including without limitation "Fatburger®," "Buffalo's Cafe," "PONDEROSA STEAKHOUSE®," "BONANZA STEAKHOUSE®," Hurricane Grill & Wings®," "Hurricane Sports Grill®," "Hurricane Dockside Grill ®," "Hurricane BTW Burgers + Tacos + Wings," "Yalla Mediterranean®", "Elevation Burger," "Johnny Rockets," "Round Table Pizza," "Hot Dog On A Stick," "Pretzelmaker," "Great American Cookies," "Fazoli's," "Twin Peaks" and "Native Grill & Wings" stores), at any location, and of any type whatsoever, within or outside the Development Area and regardless of their proximity to your Restaurants.
Except to the extent described above, you will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
If during any development period, as provided in your Multi-Unit Restaurant Agreement, you fail to open the cumulative number of Restaurants that you are required to open for that development period, you will forfeit the right to develop that number of Restaurants which you failed to open. Therefore, your total development obligation will be reduced by the number of Restaurants that you failed to open. In addition, the portion of the development fee that is attributable to the Restaurant(s) which you failed to open will be forfeited and the remaining balance that is available to be credited against the initial franchise fee (see Item 5) will be reduced accordingly. If you fail to meet your development obligation for two consecutive development periods, we may terminate your Multi-Unit Restaurant Agreement.
Source: Item 12 — TERRITORY (FDD pages 62–68)
What This Means (2025 FDD)
According to Marble Slab Creamery's 2025 Franchise Disclosure Document, the availability of an exclusive territory depends on the agreement type. Under a Multi-Unit Restaurant Agreement, Marble Slab Creamery may grant the right to develop and operate restaurants in a specified Development Area on either a "Nonexclusive" or "Protected Rights" basis. If the agreement is on a non-exclusive basis, the franchisee will not receive an exclusive territory. In this case, Marble Slab Creamery retains all rights, including the right to operate or franchise others to operate stores under the Marble Slab Creamery brand, or any other trademarks or designs, at any location, whether inside or outside the Development Area. This means a franchisee may face competition from other franchisees, company-owned outlets, or other distribution channels controlled by Marble Slab Creamery.
Even with a "Protected Rights" basis, Marble Slab Creamery retains specific rights. These Reserved Rights allow Marble Slab Creamery to operate or license others to operate stores under the Marble Slab Creamery name at any location outside the Development Area, at Non-Traditional Venues (such as airports or shopping mall food courts) within or outside the Development Area, and facilities offering catering services and mobile units for special events within and outside the Development Area. They also retain the right to operate stores under different brand names, such as "Fatburger®," "Buffalo's Cafe," and others, at any location, regardless of proximity to the franchisee's restaurants.
Furthermore, Marble Slab Creamery and its affiliates retain all rights to restaurants, trademarks, and the sale of similar or dissimilar products and services, including the right to operate stores under the Marble Slab Creamery name or other trademarks at any location, including Non-Traditional Venues. They can also offer and sell goods and services identical or similar to those provided by the restaurants through alternative distribution channels like the Internet, supermarkets, and department stores. Therefore, even with a Protected Rights agreement, a Marble Slab Creamery franchisee's territory is subject to several exceptions and potential competition from the franchisor and its affiliates.