What rights does Marble Slab Creamery reserve regarding the scope of the non-compete provisions?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
The term "Reserved Rights" means and includes the exclusive, unrestricted right, in Franchisor's sole discretion, directly and indirectly, through its employees, Affiliates, representatives, licensees, assigns, agents and others to own or operate, and to license others (which may include its Affiliates) to own or operate (i) restaurants under the name "MARBLE SLAB CREAMERY®" and under any other trademarks, trade names, service marks, logotypes, insignias, trade dress and designs at any location outside the Development Area, (ii) restaurants and other facilities under the name "MARBLE SLAB CREAMERY®" and under any other trademarks, trade names, service marks, logotypes, insignias, trade dress and designs at Excluded Venues at any location, and of any type whatsoever, within or outside the Development Area, and regardless of proximity to any Restaurant developed pursuant hereto; (iii) facilities offering catering services and mobile units designed to service special events within and outside the Development Area, (iv) restaurants and other systems operating under names other than "MARBLE SLAB CREAMERY®" and under any other trademarks, trade names, service marks, logotypes, insignias, trade dress and designs, at any location, and of any type whatsoever, within or outside the Development Area and regardless of their proximity to any Restaurant developed pursuant hereto; and (v) to produce, license, distribute and market "MARBLE SLAB CREAMERY®" brand named products, and products bearing other marks, including food and beverage products, clothing, souvenirs and novelty items, at or through any location or outlet, including grocery stores and convenience stores (including those which may be located within the Development Area), and through any distribution channel, at wholesale or retail, including by means of mail order catalogs, direct mail advertising, Internet marketing and other distribution methods.
Source: Item 23 — RECEIPT (FDD pages 101–346)
What This Means (2025 FDD)
According to the 2025 Marble Slab Creamery FDD, the franchisor retains specific rights, even if a franchisee selects "Protected Rights." Marble Slab Creamery reserves the right to operate or license others to operate restaurants under the Marble Slab Creamery name or other trademarks outside the Development Area. They can also operate restaurants and facilities at Excluded Venues, regardless of location. This means that even with protected rights, Marble Slab Creamery can still establish a presence outside the franchisee's territory or in excluded venues within it.
Marble Slab Creamery also reserves the right to offer catering services and mobile units both inside and outside the Development Area. Additionally, they can operate other restaurant systems under different names and trademarks, irrespective of their proximity to a franchisee's Marble Slab Creamery location. This broad reservation of rights allows Marble Slab Creamery to diversify its operations and brand presence without being restricted by individual franchise agreements.
Furthermore, Marble Slab Creamery retains the right to produce, license, distribute, and market Marble Slab Creamery-branded products through various channels, including grocery stores, convenience stores (even those within the Development Area), wholesale, retail, mail order catalogs, direct mail, internet marketing, and other distribution methods. This enables Marble Slab Creamery to leverage its brand through multiple revenue streams, some of which may compete with the franchisee's retail operations. A prospective franchisee should consider how these reserved rights might affect their business and market share.