Can Mrcool disapprove of a proposed lease for my Center Location?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
Lease We do not review the terms of the lease for your Center Location but require that your landlord acknowledge our rights as set forth in the lease agreement rider attached as Exhibit 4 to the Franchise Agreement (the "Lease Agreement Rider") and that you collaterally assign the lease to us as set forth in the collateral assignment of lease attached as Exhibit 5 to the Franchise Agreement.
We possess the right to disapprove of a proposed lease if the landlord refuses to sign the Lease Agreement Rider in substantially the form set forth in Exhibit 4 to the Franchise Agreement.
The Lease Agreement Rider grants certain rights to us, including our right to be notified in the event of a lease default and, potentially, for us to enter the premises of your Center.
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, Mrcool does not typically review the terms of a franchisee's center location lease. However, Mrcool requires that the landlord acknowledge Mrcool's rights as outlined in the Lease Agreement Rider, which is attached as Exhibit 4 to the Franchise Agreement, and that the franchisee collaterally assign the lease to Mrcool as detailed in Exhibit 5.
Mrcool retains the right to disapprove a proposed lease if the landlord refuses to sign the Lease Agreement Rider in substantially the form provided in Exhibit 4. This rider grants Mrcool certain rights, including notification in the event of a lease default and the potential right for Mrcool to enter the franchisee's center premises.
This means that while Mrcool doesn't scrutinize the lease terms themselves, they do require the landlord's agreement to specific conditions that protect Mrcool's interests. A prospective franchisee should ensure that any potential lease includes the Lease Agreement Rider and that the landlord is willing to sign it to avoid potential disapproval from Mrcool.