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Marble Slab Creamer Franchise Cost & Fees

Date Incorporation:  1986

Franchising Since:  1984

Headquarters: Houston, Texas       
   
Description: Marble Slab Creamery stores are distinctive retail outlets that operate under the Marble Slab Creamery® trade name. They sell a superior grade ice cream, which customers can order in combination with nuts, fruit and other "mixins." Store personnel blend the Mixins into a Marble Slab ice cream on a chilled marble or granite slab, which is the centerpiece of the stores. Stores also offer freshly baked cones, frozen yogurt and soft drinks; some offer baked goods and gourmet coffee drinks.

Franchise Offer: Marble Slab Creamery franchises a store which sells a superior grade ice cream and are designed to be located on shopping centers and Malls. They typically occupy from 650 to 1,800 sq feet of leased retail space.  Stores provide limits customer seating, most customers would consume the product off premises. 

Financial Assistance: The franchisor does not offer direct or indirect financing

Training and Assistance: 
The training program is mandatory. The franchisor offers the training for 2 individuals (usually the franchisee + manager) additional person can be trained but at the cost of the franchisee.  The training program is giving on a 10 days period and includes 17 hours of in class training and 58.25 hours of on the job training.

Territory:  The franchise agreement provides the franchisee with a competitive protection in a trade area around the store in which the franchisor will not open or grant a franchise for another store. 

Term of Agreement and Renewal:  The term of the franchisee agreement is 10 years upon payment of initial fee. There is an option to renew for another 10 year for 20% of the then current initial franchise fee for a first store franchise

Obligations and Restrictions:  If the franchisee appoints a manager to operate the store, the franchisor’s requires that they successfully complete the training program but doesn’t have to own equity in the business. Supervisors and managers must sign confidentiality agreements.

Total Number of Units in 2009: 292 in the US, 43 Canadian franchises and 25 international franchises    

Total Number of franchises Units:
360 franchises

Investment Tables:
Initial Investment:

Expenditure Low High
Initial Franchise Fee $22,000 $32,000
Leasehold Improvements $88,000 $195,000
Equipment $65,000 $85,000
Inventory $5,000 $5,000
Signs $5,000 $12,000
Small Equipment and Supplies $20,100    $20,100   
Architectural and Legal Fees $5,000 $9,800
Security and utility deposit $1,800 $3,400
Grand Opening Package $2,000 $2,000
Additional Funds (3 months) $11,375 $11,375
Total $225,275 $375,675

Ongoing fees:

Name of Fee Amount
Royalty 6% of Gross Sales
Transfer fee $5,000
Local Advertising Up to 1% of Gross Sales
Advertising Fund contributions 2% of Gross Sales
Renewal 20% of the then current initial franchise fee for a first Store franchise
Interest on late payment Prime rate plus 2%, or the maximum lawful rate permitted by Texas law, whichever is lower.
Website development and maintenance Up to $25 per month
Additional Training Currently $ 150 per day, plus transportation and expenses
Intranet development and maintenance Up to $25 per month
Relocation fee 50% of the then current initial franchise fee for a first store
Indemnification Unlimited
Audit fee Cost of audit, including travel, meal and lodging expenses of auditor.

 

The above information has been taken from the UFOC/FDD of Marble Slab Creamery

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