As a partnership 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
5.1 A Franchisee which is a corporation will comply, except as otherwise approved in writing by Franchisor, with the following requirements throughout the term of this Agreement:
5.1.1 Franchisee will furnish Franchisor with its Articles of Incorporation, By-laws, other governing documents, any other documents Franchisor may reasonably request, and any amendments thereto.
5.1.2 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.
5.1.3 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.
5.1.4 Franchisee will maintain a current list of all owners of record and all beneficial owners of any class of voting securities or securities convertible into voting securities of Franchisee and will furnish the list to Franchisor upon request.
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 the 2025 Marble Slab Creamery Franchise Disclosure Document, the ability of a franchisee to engage in activities outside of operating Marble Slab Creamery restaurants depends on the business structure of the franchisee. Specifically, the FDD states that if the franchisee is a corporation or a limited liability company, they must confine their activities exclusively to operating the Marble Slab Creamery restaurant, unless otherwise approved in writing by Marble Slab Creamery.
However, the FDD excerpts provided do not specify whether these restrictions apply to franchisees operating as a partnership. The franchise agreement may contain clauses that address the obligations and restrictions applicable to franchisees based on their business structure, including partnerships.
Therefore, it is important for a prospective franchisee to clarify with Marble Slab Creamery whether these restrictions apply to partnerships. A prospective franchisee should inquire about any specific requirements or limitations on outside business activities for partners in a Marble Slab Creamery franchise to ensure full compliance with the franchise agreement.