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Under what condition are Marble Slab Creamery franchisees' initial fees and payments deferred?

Marble_Slab_Creamery Franchise · 2025 FDD

Answer from 2025 FDD Document

Based upon the franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance. Therefore, all initial fees and payments owed by franchisees shall be deferred until the franchisor completes its pre-opening obligations under the Franchise Agreement. In addition, all development fees and initial payments by area developers shall be deferred until the first franchise under the Multi-Unit Restaurant Agreement opens.

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

What This Means (2025 FDD)

According to the 2025 Marble Slab Creamery Franchise Disclosure Document, in the state of Maryland, the Maryland Securities Commissioner requires a financial assurance based on Marble Slab Creamery's financial condition. Because of this requirement, all initial fees and payments owed by franchisees in Maryland are deferred.

This deferral remains in effect until Marble Slab Creamery fulfills its pre-opening obligations as outlined in the Franchise Agreement. This means a new franchisee in Maryland would not have to pay the initial franchise fee until Marble Slab Creamery has completed its responsibilities, such as site selection assistance, providing training, and supplying initial equipment and inventory.

For area developers in Maryland entering into a Multi-Unit Restaurant Agreement with Marble Slab Creamery, the deferral extends to development fees and initial payments. These fees are deferred until the first Marble Slab Creamery franchise under the Multi-Unit Restaurant Agreement actually opens for business. This provides a significant financial benefit to franchisees and area developers in Maryland, reducing their upfront investment and risk.

It is important to note that these deferral conditions apply specifically to franchises and franchisees subject to Maryland statutes and regulations, as mandated by the Maryland Securities Commissioner. Franchisees in other states may not have the same deferral benefits, and should consult their specific franchise agreement and any state-specific addenda for details applicable to their location.

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.