Can Mrcool or its affiliates receive payments from suppliers based on the franchisee's dealings with them?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor and its affiliates may receive payments from suppliers and/or distributors on account of such supplier's or distributor's dealings with Franchisee and other franchisees and Franchisor may use all amounts so received without restriction and, for any purpose, including Franchisor's profit.
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, Mrcool and its affiliates are permitted to receive payments from suppliers or distributors based on the franchisee's dealings with them. This means that if a franchisee purchases supplies from a particular supplier, Mrcool may receive a portion of the revenue from that supplier as a result of the franchisee's purchases.
The FDD states that Mrcool has the right to use these payments without any restrictions and for any purpose, including for their own profit. This arrangement is common in franchising, where franchisors often negotiate deals with suppliers to receive rebates or commissions based on the volume of purchases made by their franchisees.
For a prospective Mrcool franchisee, this arrangement means that while they may be required to purchase supplies from approved suppliers, Mrcool benefits directly from these purchases. This could potentially influence Mrcool's decisions regarding which suppliers are approved, as they may favor suppliers who offer more favorable payment terms to the franchisor. However, the FDD also states that Mrcool may modify the list of approved brands, suppliers, and distributors of System Supplies and approved equipment, supplies and services to be utilized by the Franchised Business.