What costs and expenses does the Mrcool fee for reviewing an alternate supplier cover?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
If you want to purchase or lease a source restricted item from a supplier that has not been previously approved or designated by us in writing, you must send us a written request for approval and submit additional information, samples, and testing data that we may request. We may charge you a fee equal to the costs and expenses that we incur in reviewing and evaluating an alternate supplier, product, and/or service requested by you. We may request that you send us samples from the supplier for testing and documentation from the supplier for evaluation. We may also require, subject to our discretion, that we be allowed to inspect the supplier's facilities. We will notify you of our approval or disapproval within a reasonable time not exceeding 60 days after we receive your written request and all additional information and samples that we request. We may, in our sole discretion, withhold our approval.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 23–26)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, if a franchisee wishes to use a supplier not already approved by Mrcool, the franchisee must submit a written request for approval along with any additional information, samples, and testing data that Mrcool may require. Mrcool may then charge a fee to cover the costs and expenses they incur while reviewing and evaluating the proposed alternate supplier, product, or service.
This evaluation process may involve Mrcool requesting samples from the supplier for testing and documentation for evaluation. Mrcool also retains the right, at its discretion, to inspect the supplier's facilities. Mrcool will then notify the franchisee of their approval or disapproval within 60 days of receiving the written request and all required information and samples. However, Mrcool maintains the sole discretion to withhold approval.
This policy means that Mrcool franchisees have the option to seek alternative suppliers, but they must bear the financial burden of Mrcool's review process. The costs could potentially be significant if Mrcool requires extensive testing, documentation, or a site visit. The franchisee also faces the risk that, despite incurring these costs, Mrcool may still deny the request. This highlights the importance of carefully considering Mrcool's existing approved suppliers and the potential costs and benefits of seeking alternatives.
It is common in franchising for franchisors to restrict suppliers to maintain quality control and brand consistency. However, the specific fees and processes for seeking alternative suppliers can vary. Prospective Mrcool franchisees should carefully evaluate the list of approved suppliers and understand the potential costs and risks associated with seeking approval for new ones.