What happens if a Marble Slab Creamery franchisee loses possession of the Accepted Location?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
13.2 Franchisee will be deemed to be in default and Franchisor may, at its option, terminate this Agreement and all rights granted hereunder, without affording Franchisee any opportunity to cure the default, effective immediately upon receipt of notice by Franchisee, upon the occurrence of any of the following events:
13.2.1 If Franchisee fails to open the Restaurant in accordance with Sections 5.8 through 5.12.
13.2.2 If Franchisee shall abandon the Restaurant.
For purposes of this Agreement, "abandon" shall refer to (i) Franchisee's failure, at any time during the Term, to keep the Restaurant open and operating for business for a period of 5 consecutive days, except as provided in the Manual, (ii) Franchisee's failure to keep the Restaurant open and operating for any period after which it is not unreasonable under the facts and circumstances for Franchisor to conclude that Franchisee does not intend to continue to operate the Restaurant at the Location, unless such failure to operate is due to Force Majeure (subject to Franchisee's continuing compliance with this Agreement), (iii) failure to actively and continuously maintain and answer the telephone listed by Franchisee for the Restaurant solely with the "MARBLE SLAB CREAMERY" name; (iv) the loss of possession of the Accepted Location; or (v) closing of the Restaurant required by Applicable Law if such closing was not the result of a violation of this Agreement by Franchisor.
Notwithstanding the foregoing, if any "abandonment" results from a Governmental Authority's exercise of the power of eminent domain, or if, through no fault of Franchisee, the premises are damaged or destroyed, then Franchisee will have 30 days after
either such event in which to apply for Franchisor's approval to relocate or reconstruct the premises, which approval will not be unreasonably withheld.
Source: Item 22 — CONTRACTS (FDD page 101)
What This Means (2025 FDD)
According to Marble Slab Creamery's 2025 Franchise Disclosure Document, losing possession of the Accepted Location can lead to significant consequences for the franchisee. Specifically, it is considered an event of 'abandonment,' which Marble Slab Creamery defines as the loss of possession of the Accepted Location.
If a franchisee loses possession of their Marble Slab Creamery location, the franchisor can deem the franchisee to be in default of the Franchise Agreement. Upon default, Marble Slab Creamery has the option to immediately terminate the Franchise Agreement and all rights granted to the franchisee without offering an opportunity to remedy the default. This termination becomes effective as soon as the franchisee receives notice.
However, there is an exception: if the loss of possession is due to a governmental authority's use of eminent domain or if the premises are damaged or destroyed through no fault of the franchisee, the franchisee has 30 days to apply for Marble Slab Creamery's approval to relocate or reconstruct the premises. Approval for relocation or reconstruction will not be unreasonably withheld by Marble Slab Creamery.