What happens if a Marble Slab Creamery customer fails to pay an invoice when due?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
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- DEFAULT.
Each of following shall constitute an "Event of Default" by Customer:
(a) Non-payment when due of any amount due and payable under this Agreement;
(b) Upon thirty (30) days prior written notice of breach from MSF, Customer's breach of any of its obligations under this Agreement (except for Customer's payment obligations under this Agreement) that remains uncured after expiration of such notice period;
(c) Customer becomes insolvent or commits an act of bankruptcy under the United States Bankruptcy Act, or shall file or have filed against it, voluntarily or involuntarily, a petition in bankruptcy or for reorganization or for the adoption of an arrangement or plan under the United States Bankruptcy Code or shall procure or suffer the appointment of a receiver for any substantial portion of its properties, or initiates or have initiated against it, voluntarily or involuntarily, any act, process or proceeding under any insolvency law or other statute or law providing for the modification or adjustment of the rights of creditors; or
(d) Customer fails to observe or perform any covenant or agreement binding on Customer under any other agreements it has with MSF within any applicable cure period.
4. REMEDIES.
(a) If an Event of Default occurs and continues beyond any applicable cure period, MSF may do any of the following:
(i) immediately terminate this Agreement;
(ii) stop performing any of the Services until the Event of Default is cured;
Source: Item 23 — RECEIPT (FDD pages 101–346)
What This Means (2025 FDD)
According to Marble Slab Creamery's 2025 Franchise Disclosure Document, non-payment of any amount due under the agreement constitutes an event of default by the customer. If a customer fails to pay when an amount is due, it triggers specific actions that Marble Slab Creamery can take.
Upon such an event of default, Marble Slab Creamery has the right to take certain remedial actions. Specifically, Marble Slab Creamery can immediately terminate the agreement with the customer. Additionally, Marble Slab Creamery can halt the performance of any services outlined in the agreement until the payment default is resolved.
These stipulations are designed to protect Marble Slab Creamery's financial interests and ensure that customers meet their payment obligations. For a prospective franchisee, this highlights the importance of understanding the payment terms and the potential consequences of failing to adhere to them. It is important to note that Marble Slab Creamery must provide a thirty day written notice of breach to the customer before terminating the agreement.