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Marble Slab Creamery Franchise Cost & Fees

Date of Incorporation: 1983

Franchising Since: 1984

Headquarters: Norcross, Georgia.

 

Business Description: Marble Slab Franchising, LLC (MSF) is the franchisor. The franchisor is a subsidiary of Marble Slab Franchise Brands LLC. Marble Slab Stores specialize in selling ice cream that customers can order in combination with nuts, fruit and other “mix-ins” that are blended into the ice cream on a chilled marble or granite slab under the “Marble Slab Creamery” mark. Stores also offer home baked cones, frozen yogurt, ice cream cakes and other ice cream treats, soft drinks, and gourmet coffee drinks.

 

Franchise Offer: MSF offers two types of Stores: (a) Traditional Stores; and (b) Non-Traditional Stores. Traditional Stores are permanent, in-line structures that typically range in size from 650 to 1,400 square feet and may be located in free standing units, strip shopping centers, regional malls, or at entertainment venues. Traditional Stores offer our full menu of products. A Non-Traditional Store will typically use between 400 and 800 square feet of space and is typically operated under a lease as an event cart, kiosk, mobile unit (including a food truck), express or co-branded location as the subordinate location, or in an outlet such as within a travel plaza, office park, convenience store, interior floor of a department store, etc.

 

Financial Assistance: MSF and its affiliates do not offer direct or indirect financing arrangements for any purpose in establishing or operating the Franchise. MSF and its affiliates do not guarantee a franchisee’s promissory note, lease, or any other obligation the franchisee may make to others.

 

Training and Assistance: Before attending the initial training program, franchisees must attend and satisfactorily complete, at their expense, a certified food safety training course MSF approves. MSF also strongly encourage all managers and Owners to take a cake decorating course MSF approves. The first stage of initial training may include up to two days of orientation at MSF’s offices or by webinar on the topics of merchandising, construction, business planning, purchasing, and the franchisor’s new Store checklist. Franchisees must attend six days of on-the-job training at a designated training location for purposes of practical application of skills taught during classroom training. Franchisees also must attend five additional days of training at MSF’s offices. At the franchisee’s option, MSF will conduct between two and five days of additional initial training at the franchisee’s Store before its opening. MSF may periodically conduct advanced training programs for franchisees, their Operating Principals, their Managers, and/or their employees at its office or another location that it designates.

 

Territory: Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that owned by MSF, or from other channels of distribution or competitive brands that MSF controls. The Franchise is for the specific site that approved. Franchisees must locate an acceptable site within the non-exclusive Site Selection Area that specified by MSF.

 

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. The renewal term is for 10 years, if conditions are met.

 

Obligations and Restrictions: Franchisees must devote their full-time, best efforts to the proper and effective operation of the Store. In addition, the Store must have at least one Manager. If franchisees are an individual, the franchisee may serve as the Manager or he/she may designate a Manager. If franchisees are an Entity, a Manager must be designated and the franchisees must appoint an individual owner as the “Operating Principal” who must have authority over all business decisions related to the Store and must have the power to bind the franchisees in all dealings with MSF. Franchisees may offer for sale in the Store only the products and services that MSF has approved in writing.

 

Estimated Number of Units: 345

 

Investment Tables

Initial Investment

Name of Fee Low High
Franchise Fee $15,000 $30,000
Grand Opening Marketing $5,000 $5,000
Travel and Living Expenses While Training $1,000 $5,000
Opening Inventory $15,635 $19,135
Architectural Fees $6,750 $8,500
Furniture, Fixtures, Equipment and Decor $82,00 $135,500
Signs $6,500 $8,500
Prepaid Rent and Security Deposit $2,500 $5,000
Leasehold Improvements $88,000 $125,000
Utility Deposits $2,200 $3,000
Professional Fees $2,000 $6,000
Computer System $2,500 $5,500
Business Licenses, Permits, etc. (for first 6 months) $1,500 $2,500
Insurance (for first 3 months) $2,500 $3,500
Additional Funds (for first 3 months) $5,000 $10,000
Estimated Total $238,085 $371,635

 

Other Fees

Type of Fee Amount
Royalty Fee 6% of Net Sales for the preceding week.
Marketing Fee 2% of Net Sales for the preceding week.
Interest 18% per year (or maximum legal rate, if less).
Late Fee $25 per week.
Additional Training Currently, $300 per employee or agent for each full or partial day.
Additional Consulting Services Currently, $300 per employee or agent for each full or partial day, plus their travel and living expenses.
Assigned Trainers MSF’s actual costs and expenses, including travel and living expenses for our trainers.
Marketing and Promotional Materials MSF’s actual costs and expenses.
Product, Service, Supplier, and Service Provider Review MSF’s reasonable cost of inspecting the supplier, testing the proposed product, or evaluating the service provider or proposed service, including personnel and travel costs. Currently these costs average $300 per day plus travel costs.
Relocation Charge $2,000
Transfer Fee $10,000 for a transfer of the franchisee’s Store.
Transfer Referral Fee $15,000
Successor Fee (Renewal) 20% of the then-current Franchise Fee.
Insurance Cost of the premium (usually $2,500 to $5,000) plus a reasonable fee ($50 per hour) for MSF’s services in procuring the insurance.
Audit Cost of audit (currently ranges between $600 to $1,800), plus travel and living expenses, plus interest on the amount of the under¬payment at an annual rate of the lesser of 18% or the maximum interest rate permitted by law.
Inspection MSF’s reasonable expenses incurred in inspecting the franchisee’s business, including travel and living expenses, wages, and other expenses for our employees; this cost will not exceed $5,000
Convention or Meeting Attendance As determined based on MSF’s costs of holding the convention or meeting.
Remedial Expenses MSF’s reasonable expenses incurred in correcting the franchisee’s operational deficiencies; this cost will not exceed $10,000 per deficiency.
Enforcement Expenses MSF’s reasonable cost of de-identifying the franchisee’s Store; this cost will not exceed $10,000
Indemnification MSF’s liabilities, fines, losses, damages, costs, and expenses (including reasonable attorneys' fees).
Liquidated Damages See FDD.
Test Products $50 - $500

The above information has been taken from the FDD of Marble Slab Creamery. Year of FDD: 2015

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