What are the consequences if an Mrcool franchisee fails to open the franchised business by the Scheduled Business Commencement Date?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees and represents that it has conducted its own independent investigation and analysis of the prospects for the establishment of MRCOOL Centers within the Development Area, that Franchisee approves of the Development Schedule as being reasonable and viable, and that Franchisee recognizes that failure to achieve the results described in the Development Schedule will constitute a material breach of this Agreement with time being of the essence.
- (d) Franchisee fails or refuses to develop and open the Franchised Business on or before the Scheduled Business Commencement Date, in compliance with the terms of this Agreement, as designated or specified in the Operations Manual, and/or in accordance with Franchisor's standards and specifications as communicated to Franchisee from time to time;
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, a franchisee's failure to open the franchised business on or before the Scheduled Business Commencement Date constitutes a breach of the Franchise Agreement.
The FDD states that the franchisee represents that they have independently analyzed the prospects for establishing Mrcool Centers and find the Development Schedule reasonable and viable. The franchisee acknowledges that not achieving the results outlined in the Development Schedule is a material breach of the agreement. Time is of the essence in adhering to this schedule.
This means that Mrcool franchisees must diligently adhere to the agreed-upon development schedule. Failure to do so could lead to Mrcool declaring a breach of contract, potentially resulting in termination of the franchise agreement and loss of the franchise. Prospective franchisees should carefully review the Development Schedule and ensure they can meet the required timelines before signing the agreement.