What documents related to the lease are required for a Mrcool franchisee?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Lease Agreement Rider" refers to and means the form "Lease Agreement Rider" attached to this Agreement as Exhibit 4.
WHEREAS, Tenant is a franchisee of Franchisor pursuant to the terms of a Franchise Agreement entered into between Franchisor and Tenant (the "Franchise Agreement") and the Leased Premises is to be used and operated by Tenant for the purpose of developing, establishing and operating a MRCOOL Center in accordance with the MRCOOL franchise system; and
WHEREAS, Franchisor and Franchisor's successors and assigns (collectively referred to as "Franchisor") is/are intended third party beneficiaries of this Rider.
NOW THEREFORE, Landlord and Tenant acknowledge and agree to the following:
system (the "MRCOOL Franchise System");
- This Rider supplements and amends the Lease. In the event of any inconsistency or conflict between the terms of this Rider and the Lease, the terms of this Rider shall prevail. Landlord and Tenant acknowledge that the rights set forth in this Rider may not be reduced, modified or altered without the express written consent of Franchisor.
Franchisor will have the option, but not the obligation, to assume or renew the Lease and the occupancy of the Leased Premises, including the right to sublease to another Franchisee of the MRCOOL Franchise System, for all or any part of the remaining term of the Lease and, in connection with said assumption, Franchisor will not be obligated to pay to Landlord more than two months past due rent, real estate taxes and common area maintenance charges. In the event Franchisor assumes Tenant's leasehold interest in the Lease pursuant to the terms of this Agreement and subsequently assigns the Lease and its leasehold interest to a MRCOOL franchisee approved by Landlord, Franchisor shall not be responsible for any obligations, debts, liabilities or payments arising and/or accruing under the Lease after the effective date of such assignment. Landlord agrees that any assignment of the Lease and Tenant's leasehold interests in the Lease by Tenant to Franchisor and/or assumption by Franchisor of the Lease and such leasehold interests shall not require Landlord consent and shall not require any payment of any assignment fee or similar charge or result in any increase in rent or other fees as a result of such assignment and/or assumption.
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, a "Lease Agreement Rider" is required. This rider is attached to the Franchise Agreement as Exhibit 4. The Lease Agreement Rider supplements and amends the lease, and in the event of any conflict between the rider and the lease, the terms of the rider will prevail. The landlord and tenant acknowledge that the rights in the rider cannot be reduced, modified, or altered without Mrcool's express written consent.
Additionally, the FDD states that Mrcool has the option to assume or renew the lease and occupancy of the leased premises, including the right to sublease to another franchisee. If Mrcool assumes the lease, they are not obligated to pay the landlord more than two months of past due rent, real estate taxes, and common area maintenance charges. If Mrcool assigns the lease to another approved franchisee, Mrcool is not responsible for obligations arising after the assignment's effective date. The landlord's consent is not required for the assignment or assumption of the lease by Mrcool, nor can they charge assignment fees or increase rent or other fees as a result.
For a prospective Mrcool franchisee, this means that the lease agreement for their center facility will be subject to specific terms outlined in the Lease Agreement Rider, giving Mrcool certain rights and control over the lease. The franchisee should carefully review Exhibit 4 to understand the implications of the rider and ensure that the lease terms align with the requirements of the Mrcool franchise agreement. The franchisee should also understand Mrcool's rights to assume or assign the lease, which could impact the franchisee's long-term occupancy of the premises.