Does the Mrcool agreement require the franchisee to acknowledge the receipt and sufficiency of consideration?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, Franchisee desires to obtain the non-exclusive license and right to use the System in the development and operation of one Center from a single fixed location within a designated territory and pursuant to the terms of this Agreement.
NOW THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and sufficiency of which is hereby mutually acknowledged, the parties do hereby agree, as follows:
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the franchise agreement does require the franchisee to acknowledge the receipt and sufficiency of consideration. Specifically, the agreement states that in consideration of the recitals and other good and valuable consideration, the receipt and sufficiency of which is mutually acknowledged, the parties agree to the terms outlined in the agreement.
This clause is a standard legal provision ensuring that both Mrcool and the franchisee recognize that something of value is being exchanged as part of the agreement. The 'consideration' typically includes the franchise rights granted by Mrcool and the fees and obligations assumed by the franchisee. By acknowledging the receipt and sufficiency of this consideration, the franchisee confirms that they believe the value they are receiving is adequate for what they are providing in return.
This acknowledgement is important because it can prevent future disputes over whether the franchisee received adequate value for their investment. It also reinforces the binding nature of the contract, making it more difficult for either party to later claim that the agreement is unenforceable due to a lack of valid consideration. Prospective Mrcool franchisees should carefully review all aspects of the franchise agreement to ensure they understand the full scope of their obligations and the value they expect to receive in return.