What rights are associated with a 'Unit' representing an ownership interest in the Marble Slab Creamery company?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
"Unit" represents an ownership interest in the Company. Such interest shall include the right to share in the profits and losses of the Company, the right to receive distributions from the Company and, to the extent that the Unit is held by a Member entitled to vote, the right to vote on any matter submitted for approval by the Members in accordance with this Agreement. Units may be issued or transferred only in accordance with the terms of this Agreement.
ARTICLE 3. -- MEMBERS, CONTRIBUTIONS AND INTERESTS
- 3.1 Members Names, Addresses and Percentages. The names and addresses of the Members, the number of Units held by each and their Percentage Interests as set forth on Schedule 1, which shall be amended from time to time to reflect any change in the information reflected thereon. The interest in the Company held by each Member will not be reflected in a certificate of membership interest or Unit holdings. Each Member agrees to return to the Company any such certificate outstanding on the date of this Agreement.
Source: Item 23 — RECEIPT (FDD pages 101–346)
What This Means (2025 FDD)
According to the 2025 Marble Slab Creamery FDD, a "Unit" represents an ownership interest in the company. This ownership interest includes specific rights for the holder.
The holder of a Unit has the right to share in the profits and losses of the company. Additionally, they are entitled to receive distributions from the company, which could be in the form of dividends or other payments.
If the Unit is held by a Member who is entitled to vote, they also have the right to vote on any matter that is submitted for approval by the Members, in accordance with the terms of the agreement. However, the FDD specifies that Units may only be issued or transferred in accordance with the terms outlined in the agreement, suggesting there may be restrictions or procedures governing how these ownership interests can be handled. The interest in the Company held by each Member will not be reflected in a certificate of membership interest or Unit holdings. Each Member agrees to return to the Company any such certificate outstanding on the date of this Agreement.
Prospective franchisees should carefully review the agreement to fully understand the conditions and limitations associated with owning and transferring Units in the Marble Slab Creamery company.