What is the weekly contribution that a Marble Slab Creamery franchisee must make to the national/regional advertising fund?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will make a weekly contribution to a fund for national/regional advertising of the System (the "Fund") in an amount equal to the NAF Percentage multiplied by Franchisee's total Net Sales during the applicable period. Franchisor reserves the right in its absolute discretion to increase said dollar amount and percentage rate at any time throughout the term of this agreement to four percent (4%), respectively. Franchisor reserves the right, in its sole discretion, to authorize some but not all franchisees, which may or may not include Franchisee, to withhold all or a portion of its or their required contribution to the Fund, as Franchisor may determine in its sole discretion. Upon receipt of Franchisor's prior written approval, which Franchisor may subsequently modify or withdraw at any time upon 30 days written notice, Franchisee may withhold from its Fund contribution a dollar amount or percentage specified by Franchisor, in its sole discretion, provided that Franchisee must spend the dollar amount or percentage withheld on local advertising in accordance in Section 10.1.4. Such local advertising may, at Franchisor's option, be in lieu of or in addition to the local advertising required pursuant to Section 10.1.1. If Franchisor subsequently withdraws its approval of such withholding program, at the end of the 30 day notice period, Franchisee must immediately cease withholding any amounts from the Fund and must remit the full 2% of weekly Net Sales to the Fund. The Fund will be maintained and administered by Franchisor or its designee, as follows:
Source: Item 22 — CONTRACTS (FDD page 101)
What This Means (2025 FDD)
According to Marble Slab Creamery's 2025 Franchise Disclosure Document, franchisees are required to make weekly contributions to the national/regional advertising fund. The contribution amount is calculated by multiplying the NAF Percentage by the franchisee's total Net Sales during the applicable period. While the specific NAF Percentage is not defined in this excerpt, the document states that Marble Slab Creamery reserves the right to increase this percentage up to a maximum of four percent (4%).
Marble Slab Creamery retains absolute discretion to authorize some, but not all, franchisees to withhold a portion or all of their required contribution to the Fund. This withholding is subject to prior written approval from Marble Slab Creamery, which can be modified or withdrawn with 30 days' notice. If a franchisee is allowed to withhold funds, they must spend the withheld amount on local advertising as per Section 10.1.4 of the agreement. This local advertising may be in place of or in addition to the local advertising required by Section 10.1.1.
If Marble Slab Creamery withdraws its approval for withholding, the franchisee must immediately cease withholding any amounts and remit the full 2% of weekly Net Sales to the Fund after the 30-day notice period. The advertising fund is managed by Marble Slab Creamery or its designee. Franchisees are required to make their contributions via separate check or EFT payment, payable to the Fund, as detailed in Section 4.6. These funds are kept separate from Marble Slab Creamery's other monies and are used exclusively for advertising and promotional activities.