Who are considered 'Managers' for a Mrcool franchised business?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
rovided that such trade names, trademarks, service marks, logos and designs are subject to modification, replacement and discontinuance by Franchisor at any time in Franchisor's Reasonable Business Judgment.
- "Management Service Fees" shall have the meaning defined and set forth in Articles 7.J. and 14.D. of this Agreement.
- "Managers" refers to and means the Managing Owner plus all assistant managers of the Franchised Business and all other employees, independent contractors, consultants, directors, officers and board members who may possess access to the Confidential Information.
- "Managing Owner" if Franchisee is a partnership or Corporate Entity, the Managing Owner shall be the Owner responsible for the day-to-day oversight, management and operation of the Franchised Business. The Managing Owner must possess, maintain and own not less than 25% of the equity and ownership interests in Franchisee. At all times, the Managing Owner must manage the operations of the Franchised Business.
- "MRCOOL Center(s)" shall have the meaning defined in the Recitals section of this Agreement and, without limitation to the Recitals section, the definition of "MRCOOL Centers", shall further include, refer to and mean: every business and all businesses owned and/or operated by Franchisor, Franchisor's affiliates and/or authorized franchisees that use and/or is/are required to use the System and/or Licensed Marks, and, including, but not limited to, the Franchised Business.
- "Operating Manager" refers to and means the Manager designated by Franchisee or Franchisee's Managing Owner, that is charged with the obligation and responsibility to supervise and manage (onsite at Franchisee's Center Facility) the day-to-day operations of the Franchised Business. At all times, the Operating Manager must: (a) meet all of Franchisor's minimum training and brand quality control standards and criteria for managers as may be set forth in the Operations Manual; (b) successfully complete Franchisor's initial training program; (c) sign the Confidentiality Agreement; and (d) agree, in writing, to assume responsibility for the on-site management and supervision of the Franchised Business.
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the term 'Managers' encompasses a few specific roles within a franchised business. This includes the Managing Owner, who is responsible for the day-to-day oversight, management, and operation of the franchised business, and must maintain at least 25% equity and ownership. Additionally, 'Managers' includes all assistant managers of the Franchised Business.
The definition extends to other individuals who have access to confidential information, such as employees, independent contractors, consultants, directors, officers, and board members. This broad definition suggests that Mrcool places a strong emphasis on protecting its confidential information and trade secrets by including anyone with access to it under the umbrella of 'Managers'.
Furthermore, the document also refers to an 'Operating Manager,' who is designated by the franchisee or Managing Owner to supervise and manage the day-to-day operations of the franchised business on-site. The Operating Manager must meet Mrcool's training and brand quality control standards, complete the initial training program, sign a Confidentiality Agreement, and agree to take responsibility for on-site management. If the Operating Manager is a family member of the Franchisee, they must also sign the Franchise Owner and Spouse Agreement and Guaranty. This structure ensures that regardless of who is managing the business, they are properly trained and bound by confidentiality agreements to protect Mrcool's interests.
If the Franchised Business is not being managed by a Managing Owner or Operating Manager who satisfactorily completed the Training Program, Mrcool is authorized to appoint a manager to maintain the operations of the Franchised Business for and on behalf of Franchisee and charge Management Service Fees. This appointment does not relieve Franchisee of its obligations or constitute a waiver of Mrcool's right to terminate the Franchise.