What is the relationship between the Marble Slab Creamery franchisee and the franchisor in the context of the Co-Brand Addendum?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
ibution channel, at wholesale or retail, including by means of the Internet or Internet web site, mail order catalogs, direct mail advertising and other distribution methods; and to advertise and promote the System through any means, including the Internet.
- 1.8 If Franchisee wishes to operate a Co-Brand Store with a Co-Brand Licensor that is not an Affiliate of Franchisor, Franchisee must submit to Franchisor any information about Franchisee's proposed Co-Brand Licensor(s) that Franchisor's request, including, (i) any existing agreements Franchisee has with them relating to an existing restaurant that Franchisee operates in their franchise system, (ii) any proposed agreements that Franchisee desires to enter into with Franchisee's Co-Brand Licensor(s) relating to the operation of their concepts in conjunction with one of the Restaurants, and (iii) any proposed modifications to the agreements that Franchisor has reviewed over the course of the Term. Before Franchisee enters into any agreements with a proposed Co-Brand Licensor relating to a Co-Brand Store, Franchisee must receive Franchisor's approval in writing of each proposed Co-Brand Licensor and each proposed agreement. Franchisor may withhold its approval for any reason, in Franchisor's sole discretion. Franchisor may require Franchisee's Co-Brand Licensor to be an Affiliate of Franchisor.
2. TERM AND RENEWAL
- 2.1 Except as otherwise provided herein and subject to Section 13, the term ("Term") of this Agreement will commence on the Effective Date and expire 15 years from the Effective Date.
- 2.2 Subject to the conditions contained in Section 2.3, at the expiration of the Term, Franchisee shall have the right (the "Renewal Right") to enter into a new franchise agreement in the form then generally being offered to prospective "MARBLE SLAB CREAMERY" franchisees (the "Renewal Franchise Agreement") for a period equal to the First Renewal Term, which Renewal Franchise Agreement shall likewise grant Franchisee the right to enter into one additional Renewal Franchise Agreement for a period equal to the Second Renewal Term. Franchisee acknowledges that the weekly royalty fee and advertising fund contributions payable thereunder shall be at the rates then applicable to new franchisees. The term of each Renewal Franchise Agreement shall commence upon the date of expiration of the Term hereof or the expiration of the First Renewal Term, as applicable;
provided, however, that each Renewal Franchise Agreement shall (i) be modified to conform to the Renewal Rights granted above;
Source: Item 22 — CONTRACTS (FDD page 101)
What This Means (2025 FDD)
According to the 2025 Marble Slab Creamery FDD, the franchisee's relationship with the franchisor in a co-branded store context involves specific obligations and interactions. If a franchisee wants to operate a co-branded store with a licensor who is not affiliated with Marble Slab Creamery, the franchisee must provide the franchisor with any requested information about the proposed co-brand licensor. This includes existing agreements the franchisee has with them, proposed agreements for operating their concepts together, and any proposed modifications to these agreements. The franchisee needs to obtain written approval from Marble Slab Creamery for each proposed co-brand licensor and agreement before entering into any co-branding deals. Marble Slab Creamery has the discretion to withhold approval for any reason and may even require the co-brand licensor to be an affiliate of the franchisor.
Marble Slab Creamery is authorized to act on behalf of the co-brands to supervise and assist the franchisee's operation of the business. Following the execution of the addendum, each co-brand or Marble Slab Creamery will provide the franchisee with an operations manual or an addendum to Marble Slab Creamery's manual, along with product and menu specifications, purchase orders, design specifications, uniforms, display of signs and notices, authorized and required equipment and fixtures, usage of the co-branded marks, décor, local advertising formats, and other related matters. Marble Slab Creamery may also provide further advice and written materials concerning the operation of the business as a co-branded food service business.
This arrangement ensures that Marble Slab Creamery maintains control over the brand and operational standards even in co-branded locations. The approval process allows Marble Slab Creamery to vet potential co-brand partners and ensure they align with the brand's values and standards. By providing operational support and materials, Marble Slab Creamery helps the franchisee manage the complexities of running a co-branded business, ensuring consistency and quality across all locations. This framework is typical in franchising, where franchisors seek to protect their brand and ensure uniform standards across all franchise locations, regardless of co-branding arrangements.