What are the requirements for a Marble Slab Creamery franchisee to renew or extend the Management Agreement?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| franchise is terminated or expires | competitive business for 2 years within 5 miles of the location of your Restaurant or any other Restaurant operated or intended to be operated under the Marks. | ||
| s. | Modification of the agreement | Section 20 | Except for changes we can make, no amendment without mutual written consent |
| t. | Integration/merger clause | Section 25 | Only terms of Franchise Agreement are binding (subject to state law). Any representations or promises outside of the disclosure document and franchise agreement may not be enforceable. |
| u. | Dispute resolution by arbitration or mediation | Section 21 | Subject to state law, except for certain claims, all disputes must be arbitrated in the county in which our headquarters are located (currently Los Angeles, California) |
| v. | Choice of forum | Section 21 | Subject to state law, arbitration in the county in which our headquarters is located (currently Los Angeles, California) |
| w. | Choice of law | Section 21 | California; if a provision is unenforceable under California law, then laws of the state in which the Restaurant is located apply to that provision. Any dispute between the parties must be brought or instituted within 1 year from the date of discovery of the conduct or event that is the basis of the legal action or proceeding. |
| Provision | Section in Multi- Unit Restaurant Agreement | Summary subject to notice and cure provisions in the other agreement. | |
| i. | Your obligations on termination/non- renewal | Section 4.3 | You will have no further right to develop or operate additional Restaurants which are not, at the time of termination, the subject of a then existing Franchise Agreement between you and us. You may continue to own and operate all Restaurants pursuant to then- existing Franchise Agreements, |
| j. | Assignment of contract by MSC | Section 7.1 | No restriction on our right to assign. |
| k. | “Transfer” by you – definition | Section 7.3 | Includes transfer of the agreement, changes in ownership of the entity which owns it. |
| l. | MSC’s approval of transfer by you | Section 7.3 | Transfers require our express written consent, which may be withheld for any reason whatsoever, in our sole and absolute discretion. |
| m. | Conditions for MSC approval of transfer | Not Applicable | Not Applicable |
| n. | MSC’s right of first refusal to acquire the business | Not Applicable | Not Applicable |
| o. | MSC’s option to purchase the business | Not Applicable | Not Applicable |
| p. | Your death or disability | Section 7.3 | Same as (l) above. |
| q. | Non-competition covenants during the term of the agreement | Section 9.2 | You may not conduct any business other than the business of the Multi-Unit Restaurant Agreement and any Franchise Agreement between you and us |
| r. | Non-competition covenants after the agreement is terminated or expires | Section 9.2 | 2 years. You may not open, operate, advise, or have a financial interest in any restaurant that is the same or is similar to a Restaurant, without our express written consent. |
| s. | Modification of the agreement | Section 10.10 | Modifications must be in writing and signed by you and us. |
| t. | Integration/merger clause | Section 10.10 | The Agreement and its exhibits contain the entire agreement of the parties (subject to |
| Provision | Section in Multi- Unit Restaurant Agreement | Summary state law). Any representations or promises outside of the disclosure document and Multi-Unit Restaurant Agreement may not be enforceable. | |
| u. | Dispute resolution by arbitration or mediation | Section 10.9 | Subject to state law, except for certain specific claims, all disputes are subject to arbitration in location of MSC’s headquarters (presently Los Angeles, California). |
| v. | Choice of forum | Section 10.9 | Subject to state law, arbitration in the county in which our headquarters is located (currently Los Angeles, California) |
| w. | Choice of law | Section 10.8 | California law governs, except with respect to Non-Competition Covenants. |
| Provision | Section in Management Agreement | Summary | |
| a. | Term of the franchise | Section 6.1 | One year |
| b. | Renewal or extension of the term | Section 6.1 | Automatic renewal for each subsequent 12 months |
| c. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 74–85)
What This Means (2025 FDD)
According to the 2025 Marble Slab Creamery Franchise Disclosure Document, the Management Agreement has specific terms regarding renewal or extension. The initial term of the Management Agreement is one year, but it automatically renews for subsequent 12-month periods.
The key benefit for a Marble Slab Creamery franchisee is that there are no specific requirements to meet for this automatic renewal. This means that as long as neither party terminates the agreement, it will continue to renew each year without the franchisee needing to fulfill any additional obligations or conditions.
This automatic renewal provides a level of stability and predictability for the franchisee. However, it is important to be aware of the conditions under which either the franchisee or Marble Slab Creamery (or its affiliate) can terminate the agreement, as outlined in other sections of the Management Agreement. The franchisee can terminate after the first year with 90 days' notice or in the event of the franchisor's material default, assignment for the benefit of creditors, bankruptcy, or insolvency. Marble Slab Creamery (or its affiliate) can also terminate after the first year with 90 days' notice, regardless of cause.