Besides a written agreement signed by both parties, what is another way the Mrcool Franchise Agreement can be modified?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
| r. | Non-competition covenants after the franchise is terminated or expires | 6, 17.E. | No involvement, ownership or interest whatsoever for 24 months in any competing business in: your Designated Territory; a 25-mile radius of your Designated Territory; a 10-mile radius of the Designated Territory of any other Center; and you must comply with confidentiality, non disclosure and non-solicitation covenants. |
|---|---|---|---|
| s. | Modification of the agreement | 18.L. | Requires writing signed by you and us, except for unilateral changes that we may make to the Manuals or our unilateral reduction of the scope of a restrictive covenant that we may make in our discretion. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–50)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the Franchise Agreement typically requires a written agreement signed by both the franchisee and Mrcool to be modified. However, Mrcool has the option to make unilateral changes to the manuals. Mrcool can also unilaterally reduce the scope of a restrictive covenant at its discretion, without requiring the franchisee's signature or consent.
This means that while significant changes to the core agreement require mutual consent, Mrcool retains the flexibility to adjust operational guidelines and certain restrictions without needing the franchisee's explicit approval. This is a common practice in franchising, where franchisors need to maintain brand standards and adapt to changing market conditions.
For a prospective Mrcool franchisee, this implies that they must stay informed about updates to the manuals, as these changes are binding even without their direct consent. While Mrcool can reduce the scope of a restrictive covenant, they are not able to expand it without a written agreement signed by both parties.