When is the Marble Slab Creamery liquidated damage fee payable?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Renewal Fee (1) | 40% of then-current initial fee | 90 days before renewal | |
| Renewal Fee for Satellite Restaurant | $2,500 | On signing a successor Franchise Agreement | You may enter into a successor Franchise Agreement for one additional 10-year term, if you meet certain conditions. |
| Securities/ Partnership Interests in Franchisee Offering (1) | $10,000 or our reasonable costs and expenses to review offering documents, whichever is greater | On demand | If you offer securities or interests in your business |
| Convention or Meeting Attendance | As we determine based on our costs of holding the convention or meeting | On demand | We do not currently charge an attendance fee, but we reserve the right to do so. |
| Remedial Expenses | Our reasonable expenses incurred in correcting your operational deficiencies; this cost will not exceed $10,000 per deficiency | On demand | Payable if we correct deficiencies that we have identified during a site inspection and that you failed to correct within a reasonable time after notice from us. |
| Liquidated Damage | See Note 7 | On demand | Payable if we terminate your Franchise Agreement based on your default or if you terminate the Franchise Agreement in violation of its terms. |
| Test Products | $50 - $500 | On demand | If we require, you must participate in market research programs or test marketing of new products and services and must purchase a reasonable quantity of the test products |
Source: Item 6 — OTHER FEES (FDD pages 23–32)
What This Means (2025 FDD)
According to Marble Slab Creamery's 2025 Franchise Disclosure Document, the liquidated damage fee is payable 'on demand.' This fee is triggered if Marble Slab Creamery terminates your Franchise Agreement due to your default, or if you terminate the Franchise Agreement in violation of its terms.
Note 7 in Item 6 of the FDD provides further details on how the liquidated damages are calculated. The calculation involves averaging your Royalty and National Advertising Fund Fees from the 12 months before the notice of default or termination (or a shorter period if the restaurant hasn't been open for 12 months). This average is then multiplied by the lesser of 36 or the number of months remaining in the Franchise Agreement term and discounted to present value using the prime interest rate of Marble Slab Creamery's principal commercial bank.
In simpler terms, if you breach the Franchise Agreement and Marble Slab Creamery terminates it, or if you terminate the agreement prematurely, you will owe a fee. This fee compensates Marble Slab Creamery for the anticipated future royalties and advertising fees they would have received from your franchise location. The 'on demand' payment term means that Marble Slab Creamery can request immediate payment of this liquidated damage fee once it is assessed.