factual

Under what condition can the Marble Slab Creamery agreement be amended?

Marble_Slab_Creamery Franchise · 2025 FDD

Answer from 2025 FDD Document

THIS ADDENDUM is entered into as of, 20 between MARBLE SLAB FRANCHISING, LLC, a Delaware limited liability company ("Company"), and , a ("Franchisee"), with reference to the following: 1. Company and Franchisee have entered into a MARBLE SLAB FRANCHISING, LLC Multi-Unit Restaurant Agreement dated as of, 20, (the "Development Agreement"). set forth herein. 2. The parties wish to modify the Development Agreement, upon the terms and conditions follows: NOW, THEREFORE, the parties agree that to amend the Development Agreement as 1. The following shall be deemed added to Section 10.8: "Illinois law, as amended, shall apply to any franchise offered or sold in Illinois, notwithstanding anything to the contrary contained in this Agreement." 2. The following shall be deemed added to Section 10.9: "However, the waiver in this paragraph shall not apply to the extent prohibited by Section 705/41 of the Illinois Franchise Disclosure Act of 1987 which provides that "Any condition, stipulation, or provision purporting to bind any person acquiring any franchise to waive compliance with any provision of this Act or any other law of this State is void. This Section shall not prevent any person from entering into a settlement agreement or executing a general release regarding a potential or actual lawsuit filed under any of the provisions of this Act, nor shall it prevent the arbitration of any claim pursuant to the provisions of Title 9 of the United States Code" or Illinois Regulations at Section 200.609."

"However, any provision in the Multi-Unit Restaurant Agreement that designates jurisdiction or venue in a forum outside of the State of Illinois is void under section 4 of the current Illinois Franchise Disclosure Act, although the Multi-Unit Restaurant Agreement may provide for arbitration in a forum outside of the State of Illinois."

Source: Item 23 — RECEIPT (FDD pages 101–346)

What This Means (2025 FDD)

According to the 2025 Marble Slab Creamery FDD, the franchise agreement can be amended under specific conditions, often requiring addendums to comply with state laws. For instance, in Illinois, an addendum modifies the Development Agreement to ensure Illinois law applies to franchises offered or sold in the state, regardless of conflicting terms in the original agreement. This addendum also addresses waivers and jurisdictional issues, ensuring franchisees' rights under the Illinois Franchise Disclosure Act are protected.

Similarly, for franchises sold in Maryland, addendums are used to comply with Maryland statutes and regulations. These amendments cover various aspects, including deferral of initial fees based on the franchisor's financial condition, modifications to release clauses, consent to jurisdiction, statute of limitations, and acknowledgments to protect franchisees' rights under the Maryland Franchise Law. These addendums ensure that the franchise agreement aligns with state-specific legal requirements.

In Minnesota, the disclosure document is amended to include clauses that protect the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C. These amendments address issues such as indemnification for trademark use, restrictions on litigation outside Minnesota, and notice requirements for termination or non-renewal of the franchise agreement. These state-specific addendums highlight the importance of understanding the legal landscape in the state where the franchise will operate, as the standard franchise agreement may be modified to comply with local laws.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.