Franchising Since: 1984
Headquarters: Beverly Hills, California
Estimated Number of Units: 365
Franchise Description: Marble Slab Franchising, LLC is the franchisor. The franchisor is a direct subsidiary of Marble Slab Franchise Brands LLC. The parent company is FAT Brands. Franchisees will establish and operate either a single retail ice cream restaurant selling a superior grade of ice cream that customers can order in combination with nuts, fruit and other “mixins” that are blended into the ice cream on a chilled marble or granite slab under the “Marble Slab Creamery” mark. The franchisor offers two types of stores: (a) traditional stores; and (b) non-traditional stores. In addition, franchisees may purchase the right to offer approved products from one or more satellites that they operate within the same shopping center or venue as their restaurant.
Training Overview: The franchisor will train the restaurant manager (which may be the franchisee) and four additional persons who have been designated as assistant managers or shift leaders in the day to day management of the restaurant. In total, five managers must attend and successfully complete the training program to become certified managers in order for franchisees to be approved for restaurant openings. The training program is three to six weeks in duration (three weeks @ 40 hours/week for shift managers and six weeks @ 50 hours/week for assistant managers, and general managers). In addition, franchisees, or the owner if the franchisee is a business entity, must attend an executive training program (one week @ 50 hours/week). Training may occur at one or more of the franchisor’s certified training stores which are currently located in Issaquah, Washington; Los Angeles, California; Fresno, California; and Beverly Hills, California, or at another franchised or affiliate-owned Restaurant that the franchisor designates. The franchisor will provide franchisees with pre-opening and post-opening supervision and assistance as it deems advisable based on the franchisee’s opening plan, subject (as to timing) to scheduling needs and availability of personnel. The franchisor will provide, as it deems appropriate, additional training for franchisees or their manager, operating partner, assistant managers, shift leaders or other employees and quarterly training and status meetings.
Territory Granted: Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that owned by the franchisor, or from other channels of distribution or competitive brands that the franchisor controls. The franchise is for the specific site that the franchisor approves. Franchisees must locate an acceptable site within the non-exclusive site selection area that the franchisor specifies. If franchisees are in full compliance with the Franchise Agreement, and subject to the terms of the Franchise Agreement, they may operate temporary outlets for short-term periods at special events away from the site, such as fairs, sporting events, conventions, etc.
Obligations and Restrictions: Franchisees do not have to personally supervise the restaurant, however, if they (or their principal approved by the franchisor) do not personally supervise the restaurant, a manager or one of their assistant managers or shift leaders who has successfully completed the training program must directly supervise the restaurant “on premises.” The manager must assume responsibility for the day-to-day operation of the restaurant, oversight of the preparation of food products, and supervision of personnel and accounting and must spend at least 40 hours per week overseeing the operation of the restaurant. Franchisees may offer for sale in the store only the products and services that the franchisor has approved in writing. Franchisees must maintain at all times a sufficient supply of required products to meet the inventory standards the franchisor requires in the manuals (or to meet reasonably anticipated customer demand, if the franchisor has not provided specific standards). Franchisees may not use the premises for the sale or display of items the franchisor has not approved, including unapproved items listed in the manual or third-party solicitations, including information provided by charities or local organizations.
Term of Agreement and Renewal: The length of the initial franchise term is 15 years. Two 10-year renewals are available if franchisees are in good standing.
Financial Assistance: The franchisor does not offer direct or indirect financing. Franchisees may not borrow more than 75% of the cost of constructing, equipping, supplying and operating the restaurant. If franchisees are a corporation or other entity, they or their owners must contribute to the franchise as equity at least 25% of the cost of constructing, equipping, supplying and operating the restaurant.
Investment Tables:
| Name of Fee | Low | High |
|---|---|---|
| Franchise Fee | $25,000 | $25,000 |
| Grand Opening Marketing | $3,000 | $5,000 |
| Travel and Living Expenses While Training | $1,000 | $3,000 |
| Other Opening Inventory | $5,700 | $15,150 |
| Architectural Fees | $7,000 | $12,500 |
| Furniture, Fixtures, Equipment and Decor | $73,000 | $121,000 |
| Signs | $800 | $9,500 |
| Prepaid Rent and Security Deposit | $2,500 | $5,000 |
| Leasehold Improvements | $50,000 | $165,000 |
| Utility Deposits | $2,200 | $3,000 |
| Professional Fees | $1,000 | $6,000 |
| Point of Sale Systems (POS) and Related Technology | $7,600 | $14,000 |
| Business Licenses, Permits, etc. (for first 6 months) | $1,500 | $2,500 |
| Insurance (3 months) | $2,500 | $3,500 |
| Additional Funds (3 months) | $8,000 | $12,000 |
| ESTIMATED TOTAL | $190,800 | $402,150 |
| Type of Fee | Amount |
|---|---|
| Royalty | 6% of total net sales; interest on any overdue amount of 1.5% per month and late fee of $25 per week. |
| National Advertising Fund | Currently 2% of total net sales. |
| Local Advertising | Currently 2% of total net sales. |
| Brand Technology System Support Services | Currently, $840-$1,500 per year for mandatory services plus up to $3,250 per year for optional services. |
| Additional Training | Franchisees must reimburse the franchisor for its costs of training, up to a maximum of $1,500 per week for each individual. |
| Reimbursement for Rescheduled Training Expenses | Franchisees must reimburse the franchisor for its additional travel expenses and wages resulting from changing the travel arrangements of its representatives scheduled to provide initial training. |
| Reimbursement for Pre-Opening and Post-Opening Assistance | Franchisees must reimburse the franchisor for travel expenses, including airfare, hotel, rental car and the then current per-diem charge per person (currently $100 per day per person) for its personnel who provide pre-opening and post-opening assistance. Franchisees must also reimburse the franchisor for its direct and indirect wages and other labor costs and expenses for its personnel who provide pre-opening and post-opening assistance. |
| 60 Day Extension Fee | $5,000 |
| Relocation Charge | $2,000 |
| Transfer | $15,000 |
| Transfer Fee for Satellite Restaurant | $2,000 |
| Audit | Cost of audit plus interest on unpaid amount of 1.5% interest per month and $25 per week. |
| Indemnification | Varies. |
| Reimbursement of Cost of Insurance | The franchisor cost to procure insurance and a reasonable fee to cover the franchisor’s related expenses |
| Product, Service, Supplier and Service Provider Review | The franchisor’s reasonable cost of inspecting the supplier, testing the proposed product, or evaluating the service provider or proposed service, including personnel and travel costs; this cost will not exceed $5,000. |
| Unapproved Product/Supplier Fee | $500 per day. |
| Damages, Costs and Expenses, including Attorneys’ Fees | Amounts the franchisor incurs. |
| Sales or Similar Taxes | Sales, gross receipts and similar taxes imposed on the franchisor because of payments franchisees make. |
| Renewal Fee | 40% of then-current initial fee. |
| Renewal Fee for Satellite Restaurant | $2,500 |
| Securities/ Partnership Interests in Franchisee Offering | $10,000 or the franchisor’s reasonable costs and expenses to review offering documents, whichever is greater. |
| Convention or Meeting Attendance | As the franchisor determines based on its costs of holding the convention or meeting. |
| Remedial Expenses | The franchisor’s reasonable expenses incurred in correcting the franchisee’s operational deficiencies; this cost will not exceed $10,000 per deficiency. |
| Liquidated Damage | See FDD. |
| Test Products | $50 - $500 |
| Architect Approval | $1,500 |
| Plan and Design Review | The franchisor’s costs and expenses to review, and have an architect acceptable to it, review the designs and plans for the restaurant, not to exceed $3,000. |
| Lease Review Fee | The franchisor costs and expense to review and accept a franchisee’s lease, not to exceed $2,500. |
| Fines | Then-current fines set forth in the manuals. The fines vary depending on various factors, including, the nature and severity of the violation. |
| Management Fee | See FDD. |
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