Does Mrcool allow franchisees to lease equipment, and how does purchasing equipment affect the initial investment?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 4: Furniture, Fixtures and Equipment – You will be required to purchase certain types of furniture, fixtures and equipment for your Center, including but not limited to, office furniture, showroom and break room desks and appliances, warehouse, shipping, and transportation equipment from us, our approved manufacturers, and/or suppliers and/or subject to our specifications. The costs for furniture and fixtures may differ depending on the material quality and on other factors. The costs listed here do not include any transportation or set up costs. It is assumed that some of the equipment will be leased. If you elect to purchase such equipment, your costs may be higher. Third party financing may be available for qualified candidates for some of the leasehold improvement costs, however, with such financing comes associated costs and fees which will cause the cost to exceed what is indicated in this chart.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–23)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, franchisees are permitted to lease certain equipment for their Mrcool Center. Note 4 in Item 7 states that it is assumed some of the equipment will be leased.
If a franchisee chooses to purchase equipment instead of leasing, the FDD indicates that their costs may be higher. The estimated initial investment for furniture, fixtures, and equipment ranges from $36,842 to $138,493. This range already accounts for the assumption that some equipment will be leased. Therefore, purchasing all equipment outright would likely push the franchisee's expenses towards the higher end of, or even beyond, this range.
It's important to note that third-party financing may be available for qualified candidates to cover some leasehold improvement costs. However, the FDD cautions that such financing comes with associated costs and fees, which would also increase the overall initial investment beyond the stated estimates. Therefore, franchisees should carefully consider the costs and benefits of leasing versus purchasing equipment, as well as the potential impact of financing options on their initial investment.