Under what circumstances might Marble Slab Creamery or its affiliate invest in individual franchised Restaurants?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
Occasionally we or our affiliates may enter into joint venture arrangements for the operation of Restaurants. We or our affiliates may do so by acquiring an interest in the limited liability company ("LLC") formed to acquire the franchise. In those instances, the LLC will be operated pursuant to a form of Limited Liability Company Operating Agreement substantially similar to the form attached as Exhibit L.
Source: Item 10 — FINANCING (FDD pages 52–53)
What This Means (2025 FDD)
According to Marble Slab Creamery's 2025 Franchise Disclosure Document, Marble Slab Creamery or its affiliates may occasionally participate in joint ventures to operate restaurants. This is achieved by acquiring an interest in the limited liability company (LLC) that is formed to acquire the franchise. In such cases, the LLC's operations are governed by a Limited Liability Company Operating Agreement, which is similar to the form attached as Exhibit L in the FDD.
For a prospective franchisee, this means that Marble Slab Creamery might become a business partner by taking an ownership stake in their franchise. This arrangement could provide additional support and resources, as Marble Slab Creamery would have a vested interest in the restaurant's success. However, it also means the franchisee would share control and profits with Marble Slab Creamery or its affiliate, as dictated by the Limited Liability Company Operating Agreement.
It is important for potential franchisees to carefully review Exhibit L and understand the terms of the Limited Liability Company Operating Agreement. This includes clarifying the roles, responsibilities, and financial obligations of all parties involved in the joint venture. Franchisees should also inquire about the specific circumstances under which Marble Slab Creamery chooses to enter into such arrangements and what criteria they use to select franchisees for these opportunities.