What additional information might Mrcool request when a franchisee proposes a new supplier?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
If you want to purchase or lease a source restricted item from a supplier that has not been previously approved or designated by us in writing, you must send us a written request for approval and submit additional information, samples, and testing data that we may request. We may charge you a fee equal to the costs and expenses that we incur in reviewing and evaluating an alternate supplier, product, and/or service requested by you. We may request that you send us samples from the supplier for testing and documentation from the supplier for evaluation. We may also require, subject to our discretion, that we be allowed to inspect the supplier's facilities. We will notify you of our approval or disapproval within a reasonable time not exceeding 60 days after we receive your written request and all additional information and samples that we request. We may, in our sole discretion, withhold our approval. We do not make our procedures or criteria for approving suppliers available to our System franchisees, except that when evaluating the approval of a particular supplier, among other things, we consider: whether the supplier can demonstrate to our reasonable satisfaction the ability to meet our standards, specifications and production requirements, the suppliers quality control, whether or not we are the exclusive supplier of the particular item, whether or not our affiliate or affiliates are the exclusive supplier of the particular item, and whether or not the suppliers approval, in our sole determination, will allow us to advance the overall interests of the System and our company. If we have previously approved a supplier, and their standards fall below our designated standards, we will revoke our approval. We will notify you in writing of us revoking our approval.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 23–26)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, if a franchisee wishes to purchase or lease source-restricted items from a supplier not already approved by Mrcool, the franchisee must submit a written request for approval. Mrcool may then request additional information, samples, and testing data to evaluate the proposed supplier.
Mrcool may also charge a fee to cover the costs and expenses incurred during the review of the alternate supplier, product, or service. This fee is not a set amount but rather covers Mrcool's actual costs. Mrcool might also ask for samples from the supplier for testing and documentation for evaluation. Furthermore, Mrcool reserves the right to inspect the supplier's facilities, although this is subject to their discretion.
After receiving the written request and all requested information and samples, Mrcool will notify the franchisee of their approval or disapproval within a reasonable time, not exceeding 60 days. However, Mrcool retains the sole discretion to withhold approval. The criteria Mrcool uses to evaluate suppliers include the supplier's ability to meet Mrcool's standards, specifications, and production requirements, the supplier's quality control measures, whether Mrcool or its affiliates are the exclusive supplier of the item, and whether approving the supplier will advance the overall interests of the Mrcool system. If a previously approved supplier's standards fall below Mrcool's designated standards, Mrcool will revoke the approval and notify the franchisee in writing.