What is the risk to the Marble Slab Creamery applicant of entering into a lease before receiving Acceptance?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
ip to the Development Area is deemed necessary or appropriate by Franchisor, in its discretion, to conduct an on-site evaluation, Applicant shall on demand reimburse, and at Franchisor's option advance, all reasonable expenses incurred by Franchisor, or which Franchisor estimates will be incurred, in connection with such on-site evaluation, including, the costs of travel, lodging and meals.
- (d) Applicant must use a real estate broker that designate or otherwise approve in writing by Franchisor to assist Applicant to locate the premises and negotiate a lease or purchase agreement for each of Applicant's proposed sites. Promptly following Applicant's receipt of Acceptance, Applicant shall proceed to negotiate a lease or purchase agreement for the site to which the Acceptance relates. Applicant's entering into any lease or purchase agreement for a site that Franchisor has not issued its Acceptance is at Applicant's sole discretion and at Applicant's sole risk. Applicant shall submit the proposed lease or real estate purchase agreement to Franchisor within 60 days after Acceptance. Franchisor shall provide notice to Applicant of its acceptance or rejection of the proposed lease or real estate purchase agreement within fifteen (15) business days after receipt thereof. A proposed lease shall include, among other items, the following terms and conditions:
- (i) The initial term of the lease, or the initial term together with any renewal terms, shall be for not less than fifteen (15) years;
- (ii) The premises shall be used solely for the operation of a Restaurant;
- (iii) The landlord's consent to Applicant's use of such proprietary marks and signage as Franchisor may prescribe for a Restaurant;
- (i) The initial term of the lease, or the initial term together with any renewal terms, shall be for not less than fifteen (15) years;
Source: Item 23 — RECEIPT (FDD pages 101–346)
What This Means (2025 FDD)
According to Marble Slab Creamery's 2025 Franchise Disclosure Document, a prospective franchisee assumes significant risk if they enter into a lease before Marble Slab Creamery issues its Acceptance of the proposed site. The FDD explicitly states that entering into any lease or purchase agreement before receiving Acceptance from Marble Slab Creamery is at the applicant's sole discretion and risk. This means that if a franchisee signs a lease before Marble Slab Creamery approves the site, they are obligated to the lease even if Marble Slab Creamery later rejects the site.
Marble Slab Creamery may delay Acceptance of the site if they are not legally able to deliver a Franchise Disclosure Document to the applicant. This could be due to a lapse or expiration of its franchise registration, or because Marble Slab Creamery is in the process of amending any such registration, or for any reason beyond Marble Slab Creamery's reasonable control.
The FDD emphasizes that the franchisee should independently determine if leasing or purchasing the site is in their best interest, regardless of whether Marble Slab Creamery issues its Acceptance or executes a Franchise Agreement for the site. Marble Slab Creamery's review and acceptance of a lease or purchase agreement is solely for Marble Slab Creamery's benefit, indicating only that the agreement meets Marble Slab Creamery's minimum standards.