When are the legal and registration fees due for a Marble Slab Creamery franchise?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
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Multi-Unit Restaurant Agreement
| Type of Expenditure | Amount | Payment | When Due | Is to Be Made |
|---|---|---|---|---|
| Development Fee | $25,000 and up16 | Lump sum | On signing of Multi Unit Restaurant Agreement |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 32–43)
What This Means (2025 FDD)
According to Marble Slab Creamery's 2025 Franchise Disclosure Document, legal and registration fees, which range from $0 to $10,000, are due as incurred. This means that franchisees will need to pay these fees as they receive invoices or are otherwise required to make payments to third parties, such as attorneys or registration services. These fees are paid to third parties, not directly to Marble Slab Creamery.
For a prospective Marble Slab Creamery franchisee, this implies that these costs will be spread out over the period leading up to the opening of the store, rather than being required as a lump sum upfront. This can help with budgeting and cash flow management during the initial setup phase. The 'as incurred' payment schedule is a fairly standard practice in franchising, as legal and registration work is typically performed incrementally.
However, franchisees should be prepared to have sufficient funds available to cover these expenses as they arise. It is important to note that the amount can vary significantly, so it is prudent to consult with legal and business advisors to get a more precise estimate based on the franchisee's specific circumstances and location. Keeping detailed records of these payments will also be essential for accounting and tax purposes.