What documents must a Mrcool franchisee execute at the request of the franchisor to become a member of the Advertising Cooperative?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
- (4) If at the time of execution of this Agreement an Advertising Cooperative has been established for a geographic area that includes, in whole or in part, Franchisee's Center location or Designated Territory, or if such Advertising Cooperative is established during the Term of this Agreement, Franchisee shall fully participate in the Advertising Cooperative and Franchisee shall execute, at the request of Franchisor, all documents required by Franchisor and Franchisee shall become a member of the Advertising Cooperative subject to the terms of those documents;
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, if an Advertising Cooperative is established that includes a franchisee's center location or designated territory, the franchisee must fully participate in the cooperative. To become a member, the franchisee is required to execute all documents requested by Mrcool. These documents are necessary for the franchisee to officially join the Advertising Cooperative and adhere to its terms.
This requirement ensures that Mrcool franchisees actively engage in local or regional marketing efforts managed by the Advertising Cooperative. By signing the required documents, franchisees agree to abide by the cooperative's rules and contribute financially as determined by the cooperative. However, the franchisee's contributions to the Advertising Cooperative will not exceed the franchisee's local minimum marketing obligations as outlined in Article 9.B of the Franchise Agreement, and these contributions will count toward fulfilling those minimum local marketing obligations.
This provision allows Mrcool to maintain a consistent marketing strategy across different regions while also ensuring that franchisees participate in and support local advertising initiatives. Franchisees should carefully review the documents they are required to sign to understand their obligations and the terms of the Advertising Cooperative. Franchisees must also submit statements and reports as required by the Advertising Cooperative and approved by Mrcool.