As an LLC Marble Slab Creamery franchisee, can I engage in activities outside of operating Marble Slab Creamery restaurants?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
5.2 A Franchisee which is a limited liability company will comply, except as otherwise approved in writing by Franchisor, with the following requirements throughout the term of this Agreement:
5.2.1 Franchisee will furnish Franchisor with its Articles of Organization, Certificate of Formation, Operating Agreement, Limited Liability Company Agreement, other governing documents, any other documents Franchisor may reasonably request, and any amendments thereto.
5.2.2 Franchisee will confine its activities exclusively to operating the Restaurant and any other "MARBLE SLAB CREAMERY" restaurants owned and operated by Franchisee pursuant to a validly existing franchise agreement.
5.2.3 Franchisee will maintain stop transfer instructions against the transfer on its records of any Equity securities; and will issue no securities upon the face of which does not legibly and conspicuously appear a printed legend in the form reasonably prescribed by Franchisor stating that the transfer of such stock is subject to the terms and conditions of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 101)
What This Means (2025 FDD)
According to Marble Slab Creamery's 2025 Franchise Disclosure Document, if you operate your franchise as a limited liability company (LLC), your activities must be primarily focused on running Marble Slab Creamery restaurants. Specifically, unless Marble Slab Creamery gives explicit written approval, an LLC franchisee must confine its business activities exclusively to operating Marble Slab Creamery restaurants. This includes the specific restaurant granted under the franchise agreement, as well as any other Marble Slab Creamery restaurants the franchisee owns and operates under separate, valid franchise agreements.
This requirement ensures that franchisees are dedicated to the Marble Slab Creamery brand and system. It prevents franchisees from diverting resources or attention to other business ventures that could potentially detract from the performance and reputation of their Marble Slab Creamery franchise. This restriction is common in franchising, as franchisors want franchisees fully invested in the success of the brand.
For a prospective Marble Slab Creamery franchisee, this means that if you choose to structure your franchise business as an LLC, you generally cannot engage in other business activities outside of operating your Marble Slab Creamery restaurants without prior written approval from Marble Slab Creamery. If you wish to pursue other business ventures, you would need to obtain permission from Marble Slab Creamery, which may or may not be granted. It would be prudent to discuss this restriction with Marble Slab Creamery during your due diligence to understand the potential for exceptions or waivers.