After termination of the Marble Slab Creamery franchise agreement, what must the franchisee promptly pay?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.6 Franchisee will promptly pay all sums owing to Franchisor and its Affiliates.
In the event of termination for any default of Franchisee, such sums will include all damages, costs, and expenses, including reasonable attorneys' fees, incurred by Franchisor as a result of the default.
- 14.7 Franchisee will pay to Franchisor all damages, costs, and expenses, including reasonable attorneys' fees, incurred by Franchisor subsequent to the termination or expiration of this Agreement in obtaining injunctive or other relief for the enforcement of any provisions of this Section 14.
Source: Item 22 — CONTRACTS (FDD page 101)
What This Means (2025 FDD)
According to the 2025 Marble Slab Creamery Franchise Disclosure Document, upon termination of the franchise agreement, the franchisee must promptly pay all sums owed to Marble Slab Creamery and its affiliates. If the termination results from the franchisee's default, these sums will include all damages, costs, and expenses, including reasonable attorneys' fees, incurred by Marble Slab Creamery due to the default.
This means that a franchisee who has their agreement terminated, especially due to a default, could face significant financial obligations beyond just the standard outstanding payments. These additional costs can include legal fees and any other expenses Marble Slab Creamery incurs as a result of the franchisee's failure to meet the terms of the agreement.
Furthermore, the franchisee is also responsible for covering all damages, costs, and expenses, including reasonable attorneys' fees, that Marble Slab Creamery incurs after the termination or expiration of the agreement while seeking injunctive or other relief to enforce any provisions outlined in Section 14 of the agreement. This section likely covers post-termination obligations such as ceasing use of trademarks and confidential information.
This provision highlights the importance of adhering to the franchise agreement and the potential financial risks associated with defaulting or violating its terms. Prospective franchisees should carefully review the termination clauses and understand the full scope of their financial responsibilities upon termination to avoid unexpected costs.