What is the default Accounting Period for Mrcool franchises if not otherwise designated?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
applicable measurement period will be determined by Franchisor from time to time with respect to Franchisee's obligations to report financial information and data to Franchisor and Franchisee's payment of all fees, including, and other obligations under this Agreement. The respective "Accounting Period" shall be those Franchisor designated times, whether, weekly, monthly, or otherwise, as designated by Franchisor, with all such Accounting Periods automatically commencing on the earlier of the (a) Scheduled Business Commencement Date, or (b) the Actual Business Commencement Date of the Franchised Business and, continuing, throughout the Term of this Agreement. Unless otherwise designated by Franchisor at any time, unless otherwise specified in this Agreement, the Accounting Period shall be a quarterly period for each and every quarter throughout the Term of this Agreement.
"Actual Business Commencement Date" refers to and means the date of the grand opening of the Franchised Business and/or the date upon which the Franchised Business is open to the public.
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the default accounting period is quarterly. Mrcool determines the accounting period for measuring and reporting financial information and for franchisees to pay fees and meet other obligations. This period can be weekly, monthly, or otherwise, as designated by Mrcool. The accounting period starts on the earlier of the Scheduled Business Commencement Date or the Actual Business Commencement Date and continues throughout the term of the agreement.
Unless Mrcool specifies otherwise, the accounting period is a quarterly period for each quarter during the term of the agreement. This means franchisees will typically need to report financial data and make payments to Mrcool four times per year.
Prospective franchisees should note that Mrcool retains the right to change the accounting period from time to time. Therefore, it is important to stay informed of any changes Mrcool makes to the accounting period to ensure timely reporting and payments.