Who must assume all obligations of the franchisee under the Mrcool Franchise Agreement during a transfer?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
llary Agreements;
- (4) The transferee shall be bound by all terms and conditions of this Agreement, and each owner of the transferee and their respective spouses shall personally execute the Franchise Owner and Spouse Agreement and Guaranty in the form attached to this Agreement as Exhibit 1. Each owner of the transferee shall also be required to execute such further agreements designated by Franchisor whereby the proposed transferee assumes each and every obligation and responsibility of Franchisee as set forth in this Agreement;
- (5) All obligations of Franchisee under this Agreement and the Ancillary Agreements shall be assumed by the transferee, each individual owner of transferee, and their respective spouses in a manner satisfactory to Franchisor;
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, in the event of a franchise transfer, the obligations of the franchisee must be assumed by several parties. Specifically, the transferee, each individual owner of the transferee, and their respective spouses must assume all obligations of the franchisee under the Mrcool Franchise Agreement and any associated ancillary agreements. This assumption must be executed in a manner that is satisfactory to Mrcool.
This requirement ensures that Mrcool maintains a consistent level of responsibility and commitment to the franchise agreement, even when ownership changes. By requiring the transferee, their owners, and their spouses to assume these obligations, Mrcool aims to protect its interests and ensure the continued operation of the franchise according to its standards.
Furthermore, each owner of the transferee is required to execute additional agreements designated by Mrcool, which further solidify their assumption of the franchisee's responsibilities. This multifaceted approach to obligation assumption underscores the importance Mrcool places on maintaining the integrity and enforceability of its franchise agreements during transfers.