What section of the Marble Slab Creamery franchise agreement defines the requirements for an approved transfer?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
12.2.3.7 The transferee will execute, for a term ending on the expiration date of this Agreement and with such renewal term as may be provided by this Agreement, the standard form franchise agreement then being offered to new franchisees of Franchisor and such other ancillary agreements as Franchisor may require for the Restaurant, which agreements will supersede this Agreement in all respects and the terms of which agreements may differ from the terms of this Agreement, including, a higher percentage royalty rate and advertising contribution; but that the transferee will not be required to pay any Initial Fee;
12.2.3.8 At Franchisor's request, Franchisee and/or its Owners, the transferor and the transferee's Owners shall have executed a continuing guaranty in favor of Franchisor of the performance and payment by the transferee of all obligations and debts to Franchisor and its Affiliates under this Agreement and, if applicable, the replacement franchise agreement.
12.2.3.9 The transferee, at its expense, will upgrade the Restaurant to conform to the then-current standards and specifications of "MARBLE SLAB CREAMERY" restaurants, and will complete the upgrading and other requirements within the time specified by Franchisor; but that the transferee franchisee will not be required to upgrade the Restaurant if Franchisee has refurbished the Restaurant, in accordance with the provisions of Section 5.21, within the 5 year period immediately preceding the date on which Franchisee notifies Franchisor of the proposed transfer;
12.2.3.10 Franchisee will remain liable for all of the obligations to Franchisor in connection with the Restaurant before the effective date of the transfer and will execute any and all instruments reasonably requested by Franchisor to evidence such liability;
12.2.3.11 At the transferee's expense, the transferee's operating partner, manager and/or such additional persons as may be reasonably designated by Franchisor will complete any training programs then in effect for Marble Slab Creamery franchisees upon such terms and conditions as Franchisor may reasonably require, including that such training be completed before the effective date of the transfer;
Source: Item 22 — CONTRACTS (FDD page 101)
What This Means (2025 FDD)
According to the 2025 Marble Slab Creamery Franchise Disclosure Document, Item 22 discusses contracts related to the franchise agreement, including conditions related to the transfer of a franchise. Specifically, section 12.2.3 outlines several requirements that must be met for a transfer to be approved. These stipulations cover various aspects of the transfer process, including the execution of new franchise agreements, potential upgrades to the restaurant, and training for the transferee.
For a prospective Marble Slab Creamery franchisee, this means that if they decide to sell their franchise, the buyer (transferee) will likely need to sign the then-current standard franchise agreement, which may have different terms than the original agreement, potentially including higher royalty rates or advertising contributions. However, the transferee will not be required to pay an initial fee. The transferee may also need to upgrade the restaurant to meet current Marble Slab Creamery standards, unless the store has been recently refurbished.
Furthermore, the operating partner or manager of the transferee will likely need to complete Marble Slab Creamery's training programs. The original franchisee remains responsible for all obligations to Marble Slab Creamery before the transfer date. These conditions ensure that any new franchisee meets Marble Slab Creamery's standards and maintains the brand's quality and consistency. Franchisees should carefully review these requirements and discuss any concerns with Marble Slab Creamery before attempting to transfer their franchise.