Under what circumstances can MSF immediately terminate the Marble Slab Creamery agreement?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) If an Event of Default occurs and continues beyond any applicable cure period, MSF may do any of the following:
(i) immediately terminate this Agreement;
(ii) stop performing any of the Services until the Event of Default is cured;
(iii) declare any amounts owed under this Agreement, whether then due or to become due, immediately due and payable and recover damages for such unpaid amount; and/or
(iv) require the immediate return of any leased or on-payment equipment to the appropriate dealer or vendor or MSF directly.
(b) An Event of Default under this Agreement shall constitute a default under any other agreement between MSF and Franchisor and Customer, including Customer's Affiliates.
For purposes of this Agreement, an "Affiliate" of the Customer shall mean any person or entity which owns: (1) a majority of the equity interests of the Customer, (2) a majority of the equity interests of which is owned by the Customer, or (3) a majority of the equity interests of which is owned by a person or entity which owns a majority of the equity interests of the Customer.
As used in this Agreement, "owns" or "owned" shall include both direct and indirect ownership.
- (c) The remedies set forth in this Agreement are not exclusive, but are cumulative and in addition to any other remedies otherwise available to MSF and Franchisor in law and equity.
Source: Item 23 — RECEIPT (FDD pages 101–346)
What This Means (2025 FDD)
According to the 2025 Marble Slab Creamery FDD, Marble Slab Franchising, LLC (MSF) can immediately terminate the Franchise Agreement if an Event of Default occurs and continues beyond any applicable cure period. In addition to immediate termination, MSF has the option to stop performing services until the default is cured, declare all amounts owed immediately due and payable, and/or require the immediate return of any leased equipment.
An Event of Default under the Franchise Agreement also constitutes a default under any other agreement between MSF and the franchisee, including the franchisee's affiliates. The FDD defines an "Affiliate" as any entity owning a majority of the franchisee's equity interests, or whose equity interests are majority-owned by the franchisee or an entity that owns a majority of the franchisee's equity interests.
The remedies available to Marble Slab Creamery are cumulative and in addition to any other remedies available in law and equity. This means that Marble Slab Creamery isn't limited to just the actions listed in the agreement; they can pursue any legal means to resolve the default.