What is the deadline for a Mrcool franchisee to elect and exercise all options to extend the terms of or renew the Lease?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
15.B. CONDITIONS FOR RENEWAL
Franchisee's renewal rights under this Article 15 are subject to and contingent upon Franchisee's satisfaction of the following conditions and criteria:
(1) Not less than 180 days prior to the expiration of the initial Term Franchisee must provide Franchisor written notice (the "Renewal Notice") of Franchisee's election to renew;
(2) At the time of delivering the Renewal Notice and at all times thereafter, Franchisee and Franchisee's Owners must be in compliance with the terms of this Agreement and all Ancillary Agreements, and without any default of this Agreement or the Ancillary Agreements;
(3) Franchisee must possess, present, and demonstrate to Franchisor and, subject to Franchisor's reasonable satisfaction, that: (a) Franchisee maintains and has secured the legal right to remain in possession of Franchisee's Center Facility and Center Location through the entire Renewal Term or; (b) Franchisee has selected a proposed new Center Location within the Designated Territory that Franchisor, at Franchisor's sole discretion, has approved in writing and that may be timely developed by Franchisee, in accordance with Franchisor's standards and specifications, for the development and operation of the Franchisee's Center throughout the duration of the Renewal Term;
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, a franchisee who wants to renew their franchise must provide Mrcool with written notice of their election to renew not less than 180 days prior to the expiration of the initial term. This notification is referred to as the "Renewal Notice."
In addition to providing the Renewal Notice at least 180 days before the term expires, the franchisee and their owners must be in compliance with the terms of the Franchise Agreement and all Ancillary Agreements at the time of delivering the Renewal Notice and at all times thereafter, without any default. The franchisee must also demonstrate that they maintain the legal right to remain in possession of their current center facility and location through the entire renewal term, or they must have selected a new center location that Mrcool has approved in writing.
It is important to note that the renewal term is for one additional 10-year term. However, this renewal term is not available if the franchised business was previously operated under a prior Franchise Agreement with Mrcool or its predecessors before the effective date of the current agreement. Therefore, a prospective franchisee should confirm their eligibility for renewal and carefully track the deadlines and conditions for exercising their renewal option to avoid losing their right to continue operating the Mrcool franchise.