Can Marble Slab Creamery withhold consent for a franchisee to relocate their restaurant?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
nclude open-air or strip malls, outer-lying pads or parking lots.
Relocation
You may not relocate your Restaurant without our prior written consent, which may be granted or withheld in our discretion and may be subject to such conditions including (i) the new location for your Restaurant premises being satisfactory to us, (ii) your lease, if any, for the new location complies with our then-current requirements, (iii) you comply with our then-current requirements for constructing and furnishing the new location, (iv) the new location will not, as determined in our sole discretion, materially and adversely affect any other Marble Slab Creamery restaurant, (v) the relocated Restaurant must be open and operating within 120 days from the closure of the original restaurant, (vi) you have fully performed and complied with each provision of the franchise agreement within the last three years prior to, and as of, the date we consent to such relocation (the "Relocation Request Date"), (vii) no event of default, or event which with the giving of notice and/or passage of time would constitute an event of default, exists as of the Relocation Request Date, and (viii) you pay us a relocation fee of $2,000. We reserve the right to terminate the franchise agreement if you fail to meet any of the requirements for the relocation, including the failure to reopen the relocated Restaurant within 120 days of t
Source: Item 12 — TERRITORY (FDD pages 62–68)
What This Means (2025 FDD)
According to Marble Slab Creamery's 2025 Franchise Disclosure Document, franchisees must obtain prior written consent from Marble Slab Creamery before relocating their restaurant. Marble Slab Creamery has the discretion to grant or withhold this consent. This means that even if a franchisee finds a seemingly better location, Marble Slab Creamery ultimately decides whether the relocation can proceed.
Several conditions must be met for a relocation to be approved. The new location must be satisfactory to Marble Slab Creamery, and if there's a lease, it must comply with their current requirements. The franchisee must also meet Marble Slab Creamery's standards for constructing and furnishing the new location. Critically, Marble Slab Creamery will assess whether the new location could negatively impact other Marble Slab Creamery restaurants. The relocated restaurant must be operational within 120 days of the original restaurant's closure.
Furthermore, the franchisee must have been in full compliance with the franchise agreement for the three years leading up to the relocation request and must not be in default. A relocation fee of $2,000 is also required. Failure to meet any of these requirements, including reopening within the 120-day timeframe, gives Marble Slab Creamery the right to terminate the franchise agreement, even if initial approval was granted. This highlights the importance of careful planning and adherence to Marble Slab Creamery's standards when considering a relocation.
This level of control is fairly common in franchising, as franchisors want to protect their brand and ensure consistent quality and market coverage. Prospective Marble Slab Creamery franchisees should carefully consider these relocation terms and ensure they have a solid understanding of the criteria Marble Slab Creamery uses to evaluate relocation requests. It would be prudent to discuss potential relocation scenarios with Marble Slab Creamery during the due diligence process to better understand their expectations and approval process.