How are 'Affiliates' defined in relation to the Mrcool Franchisor?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
SECTION 1 DEFINITIONS
Supplementing the definitions contained in the Recitals, above, the following terms will have the meaning as defined below:
"Abandonment" refers to and means the conduct of the Franchisee, including acts of omission as well as commission, indicating the willingness, desire or intent of the Franchisee to discontinue the development and/or operation of the MRCOOL Centers in the Development Area in accordance with the terms of this Agreement.
"Affiliates" means individually or collectively, any and all entities controlling, controlled by, or under common ownership with Franchisor.
"Center" shall have the meaning set forth in the Recitals and shall refer to all Centers operating under the System and Marks, whether owned by us or any Affiliate, or licensed or franchised by us or any Affiliate.
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, an 'Affiliate' refers to any entity that either controls Mrcool, is controlled by Mrcool, or is under common ownership with Mrcool. This definition is important for prospective franchisees to understand because it clarifies the scope of Mrcool's corporate relationships and can have implications for various aspects of the franchise agreement.
For a Mrcool franchisee, understanding the definition of 'Affiliates' is crucial because it can affect the competitive landscape. For example, the definition of "MRCOOL Center(s)" includes businesses owned or operated by Mrcool, its affiliates, or authorized franchisees. This means that businesses run by Mrcool's affiliates are considered part of the Mrcool system, and franchisees may encounter them as part of the broader network. Additionally, the franchise agreement may contain clauses that impact dealings with affiliates, such as supply chain requirements or marketing strategies.
Furthermore, the definition of 'Affiliates' can be relevant in the context of reserved rights and potential competition. While Mrcool may grant a designated territory to a franchisee, Mrcool and its affiliates may still have certain reserved rights within that territory. Franchisees should be aware of these potential overlaps and understand how Mrcool's affiliates might operate in proximity to their franchised business. Understanding the relationship between Mrcool and its affiliates is essential for assessing the potential for competition and the overall business environment.