Does Marble Slab Creamery's rejection of a site affect the applicant's Development Obligation?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor's rejection of any site(s) shall not effect, reduce or otherwise alter Applicant's obligation to satisfy the Development Obligation.
Source: Item 23 — RECEIPT (FDD pages 101–346)
What This Means (2025 FDD)
According to Marble Slab Creamery's 2025 Franchise Disclosure Document, the rejection of a proposed site by the Franchisor does not relieve the applicant of their development obligations. The franchisee is solely responsible for finding suitable locations and submitting them for approval in a timely manner to meet the development schedule. It is explicitly stated that the franchisee may need to identify more potential sites than required to meet their development obligations, as Marble Slab Creamery retains the right to reject certain locations.
This means that even if Marble Slab Creamery rejects a proposed site, the franchisee is still responsible for meeting the agreed-upon development schedule outlined in Exhibit B of the franchise agreement. Failing to meet the development schedule can result in the franchisee forfeiting the rights to develop the number of restaurants they failed to open.
Furthermore, the franchisee will forfeit the portion of the development fee associated with the unopened restaurants, and the amount of the development fee available as a credit will be reduced accordingly. This underscores the importance of the franchisee proactively identifying and securing suitable locations to ensure compliance with the development obligations and avoid potential financial losses.