When is the Development Center Initial Franchise Fee payable for each additional Mrcool Development Center if not waived?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
opment Agreement – Schedule A** DEVELOPMENT INFORMATION SHEET
| A. List of State Administrators | G. List of Franchisees | |---|---| | B. List of Agents for Service of Process | H. List of Franchisees Who Have Left the System | | C. Operations Manual Table of Contents | I. State Specific Addenda | | D. Financial Statements | J. State Effective Dates | | E. Franchise Agreement | K. Receipts | | F. Multi-Unit Development Agreement | | [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
FIRST DEVELOPMENT CENTER: The Development Center Initial Franchise Fee for the First Development
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the Development Center Initial Franchise Fee for each additional Development Center (over and above the First Development Center) is $0 (waived), provided the franchisee is not in default of the MRCOOL Multi-Unit Development Agreement. This includes adherence to the Development Schedule, and neither the franchisee nor their affiliates are in default of any Franchise Agreement or other agreement with Mrcool.
The fee, if not waived due to default, is payable at the time of signing the Franchise Agreement for each Development Center. This means that franchisees must ensure they remain compliant with all agreements to avoid incurring this fee for each additional center beyond the first.
This waiver of the initial franchise fee for additional development centers is a significant benefit for Mrcool multi-unit franchisees in good standing. It reduces the upfront investment required for expansion, incentivizing franchisees to develop multiple locations. However, franchisees must carefully manage their compliance with the Development Schedule and other agreements to maintain eligibility for this waiver. Failure to meet these obligations could result in unexpected costs and potentially impact the profitability of their expansion plans.