What is one condition that Marble Slab Creamery may impose on an assignment?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.2.3.7 The transferee will execute, for a term ending on the expiration date of this Agreement and with such renewal term as may be provided by this Agreement, the standard form franchise agreement then being offered to new franchisees of Franchisor and such other ancillary agreements as Franchisor may require for the Restaurant, which agreements will supersede this Agreement in all respects and the terms of which agreements may differ from the terms of this Agreement, including, a higher percentage royalty rate and advertising contribution; but that the transferee will not be required to pay any Initial Fee;
Source: Item 22 — CONTRACTS (FDD page 101)
What This Means (2025 FDD)
According to Marble Slab Creamery's 2025 Franchise Disclosure Document, a condition the company may impose on the assignment of a franchise agreement is that the transferee will execute the standard form franchise agreement then being offered to new franchisees. This agreement will be for a term ending on the current agreement's expiration date, including any renewal terms.
This new agreement will supersede the original agreement in all respects. The terms of the new agreement may differ from the original, potentially including a higher percentage royalty rate and advertising contribution. However, the transferee will not be required to pay an initial franchise fee.
This condition ensures that Marble Slab Creamery can update its franchise agreements with each transfer, incorporating current standards and fees. For a prospective franchisee, this means that if they plan to sell their franchise, the buyer will be subject to the then-current franchise terms, which may be less favorable than the original agreement. This could affect the resale value of the franchise.