Can the 'Approved Services and Products' for Mrcool Centers be changed?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
"Approved Services and Products" shall have the meaning defined in the "Recitals" section of this Agreement and shall further refer to and mean those products and services that we authorize for sale by MRCOOL Centers. We shall exclusively designate and determine the Approved Services and Products and we, in our Reasonable BusinessJudgment, may change, modify, reduce or supplement the Approved Services and Products that must be offered and sold by the Franchised Business and those products and services that may not be sold by the Franchised Business. The Operations Manual, subject to changes that we may make from time to time and our right to change and modify the Approved Services and Products, shall designate the Approved Services and Products that must be offered and sold by the Franchised Business. The Franchised Business may only offer and sell the Approved Services and Products.
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, Mrcool has the authority to modify the 'Approved Services and Products' offered at Mrcool Centers. The document states that Mrcool exclusively designates and determines these approved services and products. Mrcool, in its Reasonable Business Judgment, can change, modify, reduce, or supplement the approved services and products that the franchised business must offer and sell, as well as those products and services that may not be sold.
This means that while a franchisee may initially be approved to sell certain products and services, Mrcool retains the right to alter this list. These changes will be reflected in the Operations Manual, which is also subject to modifications made by Mrcool. The franchisee is obligated to adhere to the most current version of the Operations Manual regarding approved services and products.
For a prospective franchisee, this implies a need to stay flexible and adaptable to changes in Mrcool's offerings. It is crucial to understand that the initial list of approved services and products is not guaranteed to remain constant throughout the term of the franchise agreement. Franchisees must be prepared to adjust their business operations to align with any modifications made by Mrcool, which could impact revenue streams and inventory management. It is important to maintain open communication with Mrcool to stay informed about any upcoming changes and to understand the reasoning behind them.