Does Marble Slab Creamery require franchisees to participate in advertising programs?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
0.1.1**. 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:
- 10.2.1 Franchisor or its designee will direct all marketing programs with sole discretion over the concepts, materials, and media used in such programs and the placement and allocation thereof, including on a national, regional or local basis, as Franchisor may determine in its sole discretion. Franchisee and Franchisor agree and acknowledge that the Fund is intended to increase the general public recognition, acceptance, the use of the Proprietary Marks for the System, and for other purposes permitted hereunder. Franchisor or its designee undertake no obligation in administering the Fund to make expenditures for Franchisee which are equivalent or proportionate to Franchisee's contribution or to insure that any particular Franchisee benefits directly or pro rata from expenditures by the Fund.
- 10.2.2 Franchisor will, for each of its company-owned Marble Slab Creamery restaurants, if any, make contributions to the Fund on the same basis as assessments required of comparable franchisees within the System.
- 10.2.3 The Fund, all contributions thereto, and any earnings thereon will be used exclusively to reimburse Franchisor for advances relating to, and/or to meet any and all future costs of maintaining, administering, directing, and preparing advertising and/or promotional activities (including, among other things, the cost of preparing and conducting television, radio, magazine, and newspaper advertising campaigns; direct mail and outdoor billboard advertising; marketing surveys and other public relations activities; sponsorship of athletic and other events and activities; soliciting franchisee sales; use of advertising agencies to assist therein; and promotional brochures and other marketing materials for restaurants operated under the System). Without limiting the foregoing, Franchisor may, at its option, use up to 15% of the contributions to the Fund for soliciting franchise sales.
- 10.2.4 Franchisee will contribute to the Fund by separate check (or EFT payment) made payable to the Fund, or in the manners provided in Section 4.6. All sums paid by Franchisee to the Fund will be maintained in an account separate from the other monies of Franchisor and will not be used to defray any of Franchisor's expenses, except for such reasonable administrative costs
and overhead, if any, as Franchisor may incur in activities reasonably related to the administration or direction of the Fund and advertising programs for franchisees and the System. The Fund and its earnings will not otherwise inure to the benefit of Franchisor. Franchisor or its designee will maintain separate bookkeeping accounts for the Fund, and will provide Franchisee, at its request, with an accounting of receipts and disbursements of the Fund.
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 contribute to a marketing fund. The franchisor, or its designee, has sole discretion over all marketing programs, including the concepts, materials, media used, and the placement and allocation of these resources on a national, regional, or local level. The purpose of this fund is to increase public recognition and acceptance of the Marble Slab Creamery brand and its proprietary marks.
The funds collected are used to cover the costs of advertising and promotional activities, such as television, radio, magazine, and newspaper campaigns, direct mail, outdoor billboard advertising, marketing surveys, public relations, sponsorships, and promotional materials. Marble Slab Creamery may use up to 15% of the contributions to the fund for soliciting franchise sales. The franchisee contributions are kept in a separate account and are not used for the franchisor's expenses, except for reasonable administrative costs.
Franchisees are required to make contributions to the fund via separate check or EFT payment, as detailed in Section 4.6 of the franchise agreement. However, Marble Slab Creamery does not guarantee that expenditures from the fund will be equivalent or proportionate to a franchisee's contribution, nor does it ensure that any franchisee will directly or pro rata benefit from the fund's expenditures. In the event of a transfer of ownership, the transferee may be subject to a higher advertising contribution rate under the standard form franchise agreement offered to new franchisees.