How often does a Marble Slab Creamery franchisee contribute to the advertising fund?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will make a weekly contribution to a fund for national/regional advertising of the System (the "Fund") in an amount equal to the NAF Percentage multiplied by Franchisee's total Net Sales during the applicable period. Franchisor reserves the right in its absolute discretion to increase said dollar amount and percentage rate at any time throughout the term of this agreement to four percent (4%), respectively. Franchisor reserves the right, in its sole discretion, to authorize some but not all franchisees, which may or may not include Franchisee, to withhold all or a portion of its or their required contribution to the Fund, as Franchisor may determine in its sole discretion. Upon receipt of Franchisor's prior written approval, which Franchisor may subsequently modify or withdraw at any time upon 30 days written notice, Franchisee may withhold from its Fund contribution a dollar amount or percentage specified by Franchisor, in its sole discretion, provided that Franchisee must spend the dollar amount or percentage withheld on local advertising in accordance in Section 10.1.4. Such local advertising may, at Franchisor's option, be in lieu of or in addition to the local advertising required pursuant to Section 10.1.1. If Franchisor subsequently withdraws its approval of such withholding program, at the end of the 30 day notice period, Franchisee must immediately cease withholding any amounts from the Fund and must remit the full 2% of weekly Net Sales to the Fund. The Fund will be maintained and administered by Franchisor or its designee, as follows:
Source: Item 22 — CONTRACTS (FDD page 101)
What This Means (2025 FDD)
According to Marble Slab Creamery's 2025 Franchise Disclosure Document, franchisees are required to make weekly contributions to the national/regional advertising fund. The contribution amount is calculated by multiplying the NAF (National Advertising Fund) Percentage by the franchisee's total Net Sales during that week.
The franchisor retains the right to modify the NAF percentage at any point during the agreement, up to a maximum of four percent (4%). However, Marble Slab Creamery also has the discretion to allow some franchisees to withhold a portion or all of their contribution to the Fund. If a franchisee receives prior written approval to withhold funds, they must spend the withheld amount on local advertising, following the guidelines outlined in Section 10.1.4 of the franchise agreement.
If Marble Slab Creamery withdraws its approval for a franchisee to withhold funds, the franchisee must immediately resume contributing the full amount, which is initially 2% of weekly Net Sales, to the Fund after a 30-day notice period. This advertising fund is used for various marketing and promotional activities to benefit the Marble Slab Creamery system.