Can Mrcool change the form of the Franchise Agreement for future Centers?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
| q. Non-competition covenants during the term of the franchise | Not applicable | Not applicable as to Multi-Unit Development Agreement. However, each Center developed pursuant to Multi-Unit Development Agreement will be subject to non-competition covenants set forth in each respective Franchise Agreement. |
|---|---|---|
| r. Non-competition covenants after the franchise is terminated or expires | Not applicable | Not applicable as to Multi-Unit Development Agreement. However, each Center developed pursuant to Multi-Unit Development Agreement will be subject to non-competition covenants set forth in each respective Franchise Agreement. |
| s. Modification of the agreement | 5.4, 7.11 | Only by written agreement between you and us or if governing law requires a modification. We can change the form of the Franchise Agreement for future Centers which will not alter your obligations under the Multi- Unit Development Agreement. |
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, Mrcool can modify the Franchise Agreement for future Centers. However, these changes will not affect a franchisee's obligations under an existing Multi-Unit Development Agreement. This means that while Mrcool has the flexibility to update its standard franchise terms for new locations or franchisees, the terms agreed upon in a franchisee's original agreement will remain in effect for the duration of that agreement.
This provision protects franchisees with existing Multi-Unit Development Agreements from unexpected changes to their core obligations. However, it's important to note that modifications to the agreement between the franchisee and Mrcool can still be made through a written agreement signed by both parties, or if required by governing law.
Prospective franchisees should understand that while the core terms of their agreement are protected, future changes to the Franchise Agreement for new centers could create a competitive disadvantage or operational differences between newer and older Mrcool locations. It would be prudent for a potential franchisee to discuss with Mrcool the types of changes they foresee making to the Franchise Agreement in the future and how those changes might impact existing franchisees.