What is the 'Accounting Period' as defined in the Mrcool Franchise Agreement?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
"Accounting Period" refers to and means the period of time selected and determined by Franchisor for the required measurement and reporting of financial information and payment of financial obligations by Franchisee. The applicable measurement period will be determined by Franchisor from time to time with respect to Franchisee's obligations to report financial information and data to Franchisor and Franchisee's payment of all fees, including, and other obligations under this Agreement. The respective "Accounting Period" shall be those Franchisor designated times, whether, weekly, monthly, or otherwise, as designated by Franchisor, with all such Accounting Periods automatically commencing on the earlier of the (a) Scheduled Business Commencement Date, or (b) the Actual Business Commencement Date of the Franchised Business and, continuing, throughout the Term of this Agreement. Unless otherwise designated by Franchisor at any time, unless otherwise specified in this Agreement, the Accounting Period shall be a quarterly period for each and every quarter throughout the Term of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the Accounting Period refers to the timeframe Mrcool selects to measure and report a franchisee's financial information and payment obligations. Mrcool determines the specific measurement period for franchisees to report financial data and pay fees and other obligations under the Franchise Agreement.
The Accounting Period starts on the earlier of the Scheduled Business Commencement Date or the Actual Business Commencement Date and continues throughout the term of the agreement. Unless Mrcool designates otherwise, the Accounting Period is a quarterly period for each quarter during the agreement's term.
This means that, unless otherwise specified by Mrcool, franchisees will generally be required to report financial information and pay fees on a quarterly basis. However, Mrcool retains the right to change the Accounting Period to weekly, monthly, or another interval. Prospective franchisees should be aware of this flexibility and understand how frequent reporting and payment obligations could impact their cash flow management.