What areas of the Mrcool franchise agreement might court decisions supersede?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
sion supersedes any other term of any document executed in connection with the franchise.
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- Each provision of this amendment shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the New York General Business Law, are met independently without reference to this amendment.
[SIGNATURE PAGE TO FOLLOW]
IN WITNESS WHEREOF, the parties have duly executed and delivered this New York amendment to the MRCOOL Franchising, LLC Franchise Agreement and, if applicable, the Development Agreement on the same date as the Franchise Agreement and Development Agreement were, respectively, executed.
| Franchisor: MRCOOL Franchising, LLC | Franchisee: | |----------------------------------------|---------------------| | Signature | Signature | | Name and Title (please print) | Name (please print) | | Dated | Dated Signature Name (please print) Dated |
NORTH DAKOTA FRANCHISE AGREEMENT AMENDMENT
Amendments to the MRCOOL Franchise Agreement
In recognition of the North Dakota Franchise Investment Law, Section 51-19, the parties to the attached MRCOOL Franchising, LLC Franchise Agreement (the "Franchise Agreement") agree as follows:
The North Dakota Addendum is only applicable if you are a resident of North Dakota or if your MRCOOL Center outlet will be located within the State of North Dakota.
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- Article 15 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring North Dakota franchisees to sign a general release upon renewal of the Franchise Agreement are not enforceable in North Dakota."
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- Article 16 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring North Dakota Franchisees to consent to termination or liquidated damages are not enforceable in North Dakota."
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- Articles 6 and 17 of the Franchise Agreement are hereby amended by the addition of the following language: "Covenants not to compete such as those mentioned above are generally considered unenforceable in the State of North Dakota."
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- Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "Covenants requiring North Dakota franchisees to consent to the jurisdiction of courts outside of North Dakota may not be enforceable in North Dakota."
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- Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "for North Dakota Franchisees, North Dakota law shall apply."
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- Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring a franchisee to consent to a waiver of trial by jury are not enforceable under Section 51-19-09 of the North Dakota Franchise Investment Law."
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- Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring the franchisee to consent to a waiver of exemplary and punitive damages are not enforceable under Section 51-19-09 of the North Dakota Franchise Investment Law."
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- Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring a franchisee to consent to a limitation of claims within one year have been determined to be unfair, unjust and inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law. Therefore, for North Dakota franchisees, the statute of limitations under North Dakota Law will apply."
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- No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
[SIGNATURE PAGE TO FOLLOW]
Each provision of this amendment shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of North Dakota Law are met independently without reference to this amendment.
| Franchisor: MRCOOL Franchising, LLC | Franchisee: | |----------------------------------------|------------------------| | Signature | Signature | | Name and Title (please print) | Name (please print) | | Dated | Dated Signature Name (please print) Dated |
WASHINGTON STATE FRANCHISE AGREEMENT AMENDMENT, MULTI-UNIT DEVELOPMENT AGREEMENT, AND OWNER AND SPOUSE AGREEMENT AND GUARANTEE
Amendments to the MRCOOL Franchise Agreement
In recognition of the Washington State Franchise Investment Protection Act, Chapter 19.100 RCW, the parties to the attached MRCOOL Franchising, LLC Franchise Agreement (the "Franchise Agreement") agree as follows:
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- In any mediation or arbitration involving a franchise purchased in Washington, the mediation or arbitration site shall be either in the State of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation or as determined by the arbitrator or mediator. In addition, if litigation is not precluded by the franchise agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
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- In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW shall prevail.
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- A release or waiver of rights executed by a franchisee shall not include rights under the Washington Franchise Investment Protection Act except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel. Provisions such as those which unreasonably restrict or limit the statute of limitations period for claims under the Act, rights or remedies under the Act such as a right to a jury trial may not be enforceable.
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Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, several provisions within the franchise agreement may be superseded by state laws and court decisions, particularly in North Dakota, Washington, and California. These amendments recognize specific state franchise investment laws and aim to ensure franchisees' rights are protected under those laws. For instance, certain clauses related to general releases, termination conditions, liquidated damages, non-compete agreements, jurisdiction of courts, jury trial waivers, and waivers of exemplary or punitive damages may not be enforceable in North Dakota. Similarly, in Washington, mediation or arbitration sites, conflict of laws, releases or waivers of rights, statute of limitations, rights to a jury trial, and non-competition agreements may be subject to state law. In California, certain statements and acknowledgements signed by the franchisee may not waive claims under state franchise law or disclaim reliance on statements made by Mrcool.
These state-specific amendments highlight the importance of franchisees understanding the legal landscape in their particular state. The enforceability of certain provisions in the Mrcool franchise agreement can vary significantly depending on the franchisee's location. This is a fairly common practice in franchising, as franchise agreements are often drafted to be as broad as possible, but state laws can provide additional protections to franchisees.
Prospective Mrcool franchisees should carefully review the state-specific amendments applicable to their location and consult with legal counsel to fully understand their rights and obligations. They should also inquire about any other state-specific regulations that may impact the franchise agreement. Understanding these nuances can help franchisees avoid potential disputes and ensure a more equitable franchise relationship with Mrcool.