Under what conditions can Marble Slab Creamery engage a third party to provide services?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Non-Exclusive. If Applicant has selected or is deemed to have selected the "Non-exclusive" box in Section 2.1(b)(i), no exclusivity or territorial protection is granted to Applicant pursuant to this Agreement.
The Development Area and the rights granted to Applicant under this Agreement are non-exclusive (subject only to any territorial rights granted to Applicant pursuant to any unit Franchise Agreement(s) between the parties) and without limiting the generality of the foregoing, Franchisor reserves all other rights including the exclusive, unrestricted right, in Franchisor's sole discretion, directly and indirectly, through its employees, Affiliates, representatives, licensees, assigns, agents and others to (i) own or operate and to franchise or license others to own or operate restaurants under the name "MARBLE SLAB CREAMERY®" and under any other trademarks, trade names, service marks, logotypes, insignias, trade dress and designs at any location whatsoever whether within or outside the Development Area, including at Excluded Venues, and regardless of their proximity to any Restaurant developed or under development or consideration by Applicant; (ii) own or operate facilities offering catering services and mobile units designed to service special events within and outside the Development Area and (iii) produce, license, distribute and market "MARBLE SLAB CREAMERY®" brand named products, and products bearing other marks, including food and beverage products, clothing, souvenirs and novelty items, at or through any location or outlet, including grocery stores and convenience stores (including those which may be located within the Development Area), and through any distribution channel, at wholesale or retail, including by means of mail order catalogs, direct mail advertising, Internet marketing and other distribution methods.
- (b) Protected Rights. If Applicant has selected the "Protected Rights" box in Section 2.1(b)(ii), then subject to the Reserved Rights, during the Term, Franchisor shall not open or operate, nor license any other person or Entity to own or operate, any MARBLE SLAB CREAMERY® Restaurant at any Venue within the Development Area.
The term "Reserved Rights" means and includes the exclusive, unrestricted right, in Franchisor's sole discretion, directly and indirectly, through its employees, Affiliates, representatives, licensees, assigns, agents and others to own or operate, and to license others (which may include its Affiliates) to own or operate (i) restaurants under the name "MARBLE SLAB CREAMERY®" and under any other trademarks, trade names, service marks, logotypes, insignias, trade dress and designs at any location outside the Development Area, (ii) restaurants and other facilities under the name "MARBLE SLAB CREAMERY®" and under any other trademarks, trade names, service marks, logotypes, insignias, trade dress and designs at Excluded Venues at any location, and of any type whatsoever, within or outside the Development Area, and regardless of proximity to any Restaurant developed pursuant hereto; (iii) facilities offering catering services and mobile units designed to service special events within and outside the Development Area, (iv) restaurants and other systems operating under names other than "MARBLE SLAB CREAMERY®" and under any other trademarks, trade names, service marks, logotypes, insignias, trade dress and designs, at any location, and of any type whatsoever, within or outside the Development Area and regardless of their proximity to any Restaurant developed pursuant hereto; and (v) to produce, license, distribute and market "MARBLE SLAB CREAMERY®" brand named products, and products bearing other marks, including food and beverage products, clothing, souvenirs and novelty items, at or through any location or outlet, including grocery stores and convenience stores (including those which may be located within the Development Area), and through any distribution channel, at wholesale or retail, including by means of mail order catalogs, direct mail advertising, Internet marketing and other distribution methods.
Source: Item 23 — RECEIPT (FDD pages 101–346)
What This Means (2025 FDD)
According to the 2025 Marble Slab Creamery Franchise Disclosure Document, Marble Slab Creamery retains significant rights to operate and license its brand through various channels, including third parties. Specifically, Marble Slab Creamery reserves the right to engage third parties to operate Marble Slab Creamery restaurants and market Marble Slab Creamery products under certain conditions. These conditions depend on whether the applicant has selected a "Non-exclusive" or "Protected Rights" option.
If a franchisee selects the "Non-exclusive" option, Marble Slab Creamery retains unrestricted rights to operate and franchise others, including through employees, affiliates, representatives, licensees, assigns, and agents. This includes the right to own or operate restaurants under the Marble Slab Creamery name, as well as other trademarks, at any location, including Excluded Venues, without territorial restrictions. Marble Slab Creamery can also operate catering services and mobile units and produce, license, distribute, and market Marble Slab Creamery branded products through any outlet or distribution channel.
If the franchisee selects the "Protected Rights" option, Marble Slab Creamery agrees not to open or license others to open a Marble Slab Creamery restaurant within the Development Area during the term of the agreement, subject to Reserved Rights. Reserved Rights include the right to operate restaurants outside the Development Area, at Excluded Venues, and through catering services and mobile units. Marble Slab Creamery also retains the right to operate other systems under different names and to distribute Marble Slab Creamery products through various channels, even within the Development Area.
In essence, Marble Slab Creamery maintains broad discretion to utilize third parties for various aspects of its business, regardless of the specific territorial rights granted to a franchisee. This is a common practice in franchising, allowing franchisors to expand their brand presence through diverse channels while retaining control over brand standards and product distribution. Prospective franchisees should carefully consider the implications of these reserved rights and how they might affect their own Marble Slab Creamery operations.