What happens if a Marble Slab Creamery franchisee fails to maintain the required insurance?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
If you fail to obtain and maintain insurance coverage as the Franchise Agreement requires, we have the right, but not the obligation, to obtain the required insurance for you and to charge you for the cost of the insurance plus a reasonable fee for our services in procuring the insurance, which may be debited to your account by electronic debit.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 43–49)
What This Means (2025 FDD)
According to Marble Slab Creamery's 2025 Franchise Disclosure Document, franchisees are required to maintain specific insurance coverage throughout the term of the Franchise Agreement. If a franchisee fails to obtain and maintain the required insurance, Marble Slab Creamery has the right, but not the obligation, to obtain the necessary insurance on behalf of the franchisee.
In the event that Marble Slab Creamery secures insurance for a franchisee, the franchisee will be charged for the cost of the insurance. Additionally, Marble Slab Creamery may charge a reasonable fee for their services in procuring the insurance. This total amount may be debited directly from the franchisee's account through electronic debit.
This provision ensures that all Marble Slab Creamery locations maintain adequate insurance coverage, protecting both the franchisee and franchisor from potential liabilities. It is crucial for prospective franchisees to understand the insurance requirements and ensure they are consistently met to avoid additional costs and potential disruptions to their business operations.