Do you want to open an ice cream shop business by buying Marble Slab franchise? If YES, here is how much it cost to open a Marble Slab franchise successfully. Marble Slab Franchising, LLC (MSF) started operations in 1983 and they began selling franchise in 1984. They have their corporate headquarters at Atlanta, Georgia and presently they have an estimated 330 franchise units in operation.

Marble Slab Franchising, LLC (MSF) is the franchisor. The franchisor is a subsidiary of Marble Slab Franchise Brands LLC, which is a wholly-owned subsidiary of Global Franchise Group, LLC. The franchisor offers franchises for the operation of retail ice cream stores 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.

Types of Marble Slab Franchise Stores

Stores also offer home baked cones, frozen yogurt, ice cream cakes and other ice cream treats, soft drinks, and gourmet coffee drinks. The franchisor offers two types of Stores:

a. 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.

b. Non-Traditional Stores

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.

Here are areas where you are expected to spend money and the cost associated with it;

Financial Investment Required to Open a Marble Slab Creamery Franchise

1. Initial Franchise Fee: $15,000 to $35,000

If Marble Slab Creamery grants you a franchise for a Traditional Store, then when you sign the Franchise Agreement, you must pay Marble Slab Creamery an initial franchise fee (“Franchise Fee”) of $25,000. The Franchise Fee for a Non-Traditional Store is $15,000. The Franchise Fee for a Co-Brand Store is $35,000.

Marble Slab Creamery does not offer financing for the Franchise Fee. Except for any special programs or periodic discounts Marble Slab Creamery may offer or as otherwise described in this Item 5, the Franchise Fee is uniform for all franchisees.

Please note that Marble Slab Creamery’s Patriot Program incentive provides a 25% reduction in the initial Franchise Fee due under Marble Slab Creamery’s single unit Franchise Agreement for Traditional Stores only. This incentive may not be combined with any other incentive program and applies only to the first Store.

2. Satellite Fee: $5,000 per Satellite location

If Marble Slab Creamery permits you to operate a Satellite, you must pay it a Satellite fee of $5,000 per Satellite location when you sign the Satellite Addendum. A copy of the Satellite Addendum is attached to the Franchise Agreement.

Please note that the Satellite fee is fully earned by Marble Slab Creamery when paid, is not refundable, and is uniform to all franchisees.

3. Development Fee: $5,000 per Store

To be opened under the Area Development Agreement. If Marble Slab Creamery grants you development rights, then you will pay it a development fee (“Development Fee”) of $5,000 per Store to be opened under the Area Development Agreement when you sign the Area Development Agreement.

The Development Fee will vary based on the number of Stores that you agree to develop (with a minimum of 3 Stores), regardless of whether the Stores are Traditional or Non-Traditional Stores.

The criteria used to calculate the number of Stores that you must develop in the Development Area for purposes of calculating the Development Fees is generally uniform for all franchisees.

  • The Franchise Fees for Stores opened under a Development Agreement (with a minimum of 3 Stores) will be (a) $20,000 for the first Store, and (b) $10,000 for each additional Store thereafter.
  • For each Store, you must sign Marble Slab Creamery’s then-current form of Franchise Agreement to govern the operation of that Store.
  • Marble Slab Creamery reserves the right, but not the obligation, to reduce the Franchisee Fees for existing franchisees.

Please note that these reduced Franchise Fees, along with the Development Fee, are each deemed fully earned by Marble Slab Creamery when paid and is not refundable.

4. Site Selection Assistance: Marble Slab Creamery’s out-of-pocket expenses

Marble Slab Creamery will review your submittal package for your proposed site and determine whether to accept your proposed site. It will conduct an on-site evaluation if it considers it necessary and appropriate as part of its evaluation of your submittal package.

If Marble Slab Creamery determines that on-site evaluation is necessary and appropriate (on its own initiative), it will provide the evaluations (up to 2 days, unless you and Marble Slab Creamery agree otherwise) at its own expense, although it reserves the right to charge you an additional fee for this service if more than 2 days are necessary to complete the review.

If Marble Slab Creamery charges this fee, the fee will be Marble Slab Creamery’s out-of-pocket expenses for each proposed site for which it conducts an on-site evaluation. Marble Slab Creamery expects this additional fee to be $300 per employee or agent for each full or partial day after the second day, not to exceed five days.

Please note that the site selection assistance fee is not refundable.

5. Grand Opening Marketing Fee: $5,000

Marble Slab Creamery reserves the right to collect the grand opening marketing fee of $5,000 when you sign your Franchise Agreement.

If Marble Slab Creamery collects this fee, it will either: (i) reimburse you for your documented grand opening marketing expenditures that it has pre-approved, up to the $5,000; or (ii) directly pay your vendors for your grand opening marketing expenditures that it has pre-approved, up to the $5,000.

Please note that the grand opening marketing fee is not refundable.

6. Royalty Fee: 6% of your Net Sales for the preceding month

Due Date:  Currently, 8:00 P.M. (Eastern Time) on the following Wednesday of each week.

7. Marketing Fee: 2% of your Net Sales for the preceding month

Due Date:  Currently, 8:00 P.M. (Eastern Time) on the following Wednesday of each week.

8. Local Marketing Requirement: 2% of your Net Sales (Due Date:  Annually.)

9. Interest: 18% per year (or maximum legal rate, if less)

Due Date:  On demand.

Please note that if you fail to make a payment due to Marble Slab Creamery on time, you must pay it interest on the amount owed from the due date until paid in full.

10. Late Fee: $25 per week (Due Date:  On demand.)

Please note that if you fail to make a payment due to Marble Slab Creamery on time, you must pay it the late fee. It may increase the late fee on 60 days’ written notice. However, it may not increase the late fee more than once in any 12-month period.

11. Additional Training: Currently, $300 per employee or agent for each full or partial day. (Due Date:  Before training begins.)

Marble Slab Creamery may charge for additional training for (i) training persons repeating a course or replacing a person who did not pass, (ii) training new employees, and (iii) optional training it provides. Please note that you must pay for any travel and living expenses, wages, and other expenses your trainees incur.

12. Additional Consulting Services: Currently, $300 per employee or agent for each full or partial day, plus their travel and living expenses. (Due Date:  Within 15 days after services are rendered.)

Please note that this is payable if Marble Slab Creamery provides requested consulting services in person at a place other than its offices.

  1. Assigned Trainers: Marble Slab Creamery’s actual costs and expenses, including travel and living expenses for its trainers. (Due Date:  Within 10 days of invoice.)

Please note that if you fail to maintain Marble Slab Creamery’s quality and service standards, it may, in its sole judgment, assign trainers to the Store to retrain your employees and restore service levels.

  1. Product, Service, Supplier, and Service Provider Review: Marble Slab Creamery’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. (Due Date:  On demand.)

Please note that this is payable if you wish to offer products or use any supplies, equipment, or services that Marble Slab Creamery has not approved, or wish to purchase from a supplier or service provider that Marble Slab Creamery has not approved, whether or not Marble Slab Creamery approves the item, service, supplier, or service provider.

  1. 60-Day Extension Fee: $5,000 (Due Date:  Upon expiration of the Site Securitization Deadline.)

Please note that if you do not enter into and provide Marble Slab Creamery with a copy of the purchase agreement or Site Lease, as applicable, in accordance with the requirements of the Franchise Agreement on or before the Site Securitization Deadline, so long as you are otherwise in compliance with your obligations under the Franchise Agreement and are using best efforts to secure an extension to the Site Securitization Deadline, Marble Slab Creamery will grant you a 60-day extension to the Site Securitization Deadline in exchange for your payment of a $5,000 extension fee.

  1. Relocation Charge: $2,000 (Due Date:  On demand.)

Please note that this is payable if you ask Marble Slab Creamery to review a new proposed site, whether or not it approves the site.

  1. Transfer Fee: $10,000 for a transfer of your Store or Franchise Agreement. (Due Date:  At or before transfer.)

Payable only on transfer of Franchise. Upon the submission of the proposal to transfer, you must pay Marble Slab Creamery a non-refundable deposit of $2,000 in connection with the costs it will incur in evaluating that transfer. Please note that if you move forward with the transfer, the deposit will be applied toward the transfer fee.

  1. Successor Fee: Marble Slab Creamery’s then-current Successor Fee; currently, $7,500. (Due Date:  On signing a successor Franchise Agreement.)

Please note that you may enter into a successor Franchise Agreement for one additional 10-year term, if you meet certain conditions.

  1. Successor Fee (Renewal) for Satellite Store: $2,500 (Due Date:  On signing a successor Franchise Agreement.)

Please note that you may enter into a successor Franchise Agreement for one additional 10-year term, if you meet certain conditions.

  1. Insurance: Cost of the premium (usually $2,500 to $5,000), plus a reasonable fee ($50 per hour) for Marble Slab Creamery’s services in procuring the insurance. (Due Date:  On demand.)

Please note that this is payable only if you fail to maintain the minimum insurance Marble Slab Creamery requires and it chooses to procure the required insurance for you.

  1. Audit: Cost of audit (currently ranges between $600 and $1,800), plus travel and living expenses, plus interest on the amount of the underpayment at an annual rate of the lesser of 18% or the maximum interest rate permitted by law. (Due Date:  Within 15 days of demand.)

Please note that this is payable if audit or review shows an understatement of 2% or more of your Net Sales for any period.

  1. Inspection: Marble Slab Creamery’s reasonable expenses incurred in inspecting your business, including travel and living expenses, wages, and other expenses for its employees; this cost will not exceed $5,000. (Due Date:  On demand.)

Please note that this is payable if inspection is needed due to your repeated or continuing failure to comply with any provision of the Franchise Agreement.

  1. Convention or Meeting Attendance: as Marble Slab Creamery determines based on its costs of holding the convention or meeting. (Due Date:  On demand.)

Please note that Marble Slab Creamery does not currently charge an attendance fee, but it reserves the right to do so.

  1. Remedial Expenses: Marble Slab Creamery’s reasonable expenses incurred in correcting your operational deficiencies; this cost will not exceed $10,000 per deficiency. (Due Date:  On demand.)

Please note that this is payable if Marble Slab Creamery corrects deficiencies that it has identified during a site inspection and that you failed to correct within a reasonable time after notice from Marble Slab Creamery.

  1. Enforcement Expenses: Marble Slab Creamery’s reasonable cost of de-identifying your Store. (Due Date:  On demand.)

Please note that this is payable if your Franchise Agreement expires or is terminated, you fail to de-identify your Store, and Marble Slab Creamery takes steps to do so.

  1. Indemnification: Marble Slab Creamery’s liabilities, fines, losses, damages, costs, and expenses (including reasonable attorneys’ fees) (“Losses”)

Due Date:  On demand.

This is payable if Marble Slab Creamery incurs Losses due to your activities under the Franchise Agreement or your activities relating to the Store.

  1. Liquidated Damages: varies under the circumstances (Due Date:  On demand.)

This is payable if Marble Slab Creamery terminates your Franchise Agreement based on your default or if you terminate the Franchise Agreement in violation of its terms.

  1. Test Products: $50 to $500 (Due Date:  On demand.)

Please note that if Marble Slab Creamery requires, you must participate in market research programs or test marketing of new products and services and must purchase a reasonable quantity of the test products.

Solomon. O'Chucks