According to Mrcool's 2025 Franchise Disclosure Document, the company maintains a bank line of credit of $500,000. This line of credit is subject to monthly interest payments, with the interest rate being variable and based on the Term SOFR Rate. As of December 31, 2024, the interest rate was 8.375%. The line of credit is secured by all of Mrcool's business assets. This line of credit is set to expire on June 19, 2025.

For a prospective franchisee, this information is relevant because it provides insight into Mrcool's financial management and access to capital. A line of credit can help a franchisor manage cash flow and invest in growth initiatives, which can indirectly benefit franchisees through enhanced brand recognition and support services.

However, it's also important to note that the line of credit is secured by all of Mrcool's business assets, meaning that lenders have a claim on these assets in case of default. Additionally, the variable interest rate exposes Mrcool to interest rate risk, which could increase borrowing costs if interest rates rise. The expiration date of the line of credit is also a factor to consider, as Mrcool will need to renew or replace the line of credit before it expires to maintain access to these funds.