For Mrcool, what article of the agreement contains the non-competition covenants that remain in effect after an unapproved transfer?

According to Mrcool's 2025 Franchise Disclosure Document, if a franchisee attempts to transfer the Franchise Agreement to a third party without obtaining Mrcool's consent, the franchisee will remain subject to the non-competition covenants outlined in Article 4 of the agreement. This condition applies regardless of any purported or actual transfer that violates the terms of the Franchise Agreement.

This means that even if a Mrcool franchisee sells or attempts to sell their franchise without proper approval from Mrcool, they are still bound by the restrictions that prevent them from engaging in competitive activities. These restrictions are designed to protect Mrcool's business interests and prevent franchisees from using their knowledge and experience gained from the franchise to directly compete with the system.

For a prospective franchisee, this highlights the importance of adhering to the transfer requirements outlined in the Franchise Agreement. Failure to obtain proper consent for a transfer does not release the franchisee from their non-competition obligations. This could significantly limit their future business opportunities if they attempt to exit the Mrcool system without following the correct procedures. It is important to carefully review Article 4 of the Franchise Agreement to fully understand the scope and duration of these non-competition covenants.