Under what circumstance is the Marble Slab Creamery securities/partnership interests in franchisee offering fee payable?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Renewal Fee (1) | 40% of then-current initial fee | 90 days before renewal | |
| Renewal Fee for Satellite Restaurant | $2,500 | On signing a successor Franchise Agreement | You may enter into a successor Franchise Agreement for one additional 10-year term, if you meet certain conditions. |
| Securities/ Partnership Interests in Franchisee Offering (1) | $10,000 or our reasonable costs and expenses to review offering documents, whichever is greater | On demand | If you offer securities or interests in your business |
Source: Item 6 — OTHER FEES (FDD pages 23–32)
What This Means (2025 FDD)
According to Marble Slab Creamery's 2025 Franchise Disclosure Document, a franchisee will have to pay a Securities/Partnership Interests in Franchisee Offering fee if they offer securities or interests in their Marble Slab Creamery business. This fee is either $10,000 or Marble Slab Creamery's reasonable costs and expenses to review the offering documents, whichever amount is greater.
The fee is due on demand, meaning Marble Slab Creamery can request payment at any time after the franchisee begins offering securities or interests. This fee is intended to cover Marble Slab Creamery's expenses associated with reviewing the franchisee's offering documents to ensure compliance with applicable laws and regulations and to protect the Marble Slab Creamery brand.
For a prospective franchisee, this means that if they plan to raise capital by selling securities or partnership interests in their Marble Slab Creamery franchise, they should budget for this fee. It is important to note that the fee could be higher than $10,000 if Marble Slab Creamery's review costs exceed that amount. Franchisees should discuss with Marble Slab Creamery what factors might cause the review costs to exceed $10,000.