What is the estimated range for construction and leasehold improvements for a Mrcool franchise?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
| Amount | Method of Payment | When Due | ||
|---|---|---|---|---|
| Initial Franchise Fee (Note 1) | $50,000 | Lump sum | When Franchise Agreement is signed | Us |
| Construction and Leasehold Improvements (Note 2) | $158,160 - $306,250 | As arranged | As incurred | Contractors, suppliers, and/or Landlord |
| Lease Deposits – | $28,125 - $112,500 | As arranged | As incurred | Landlord |
| Three Months | ||||
| (Note 3) | ||||
| Furniture, Fixtures and Equipment (Note 4) | $36,842 - $138,493 | As arranged | As incurred | Suppliers, Designated Suppliers |
| Signage | $8,375 - $14,240 | As arranged | As incurred | Designated Suppliers |
| (Note 5) | ||||
| Computer, Software and Business Management System (Note 6) | $46,639 - $198,579 | As arranged | As incurred | Suppliers, Designated Suppliers |
| Grand Opening | $5,000 - $10,000 | As arranged | As incurred | Suppliers |
| Marketing (Note 7) | ||||
| Initial Inventory | $337,992 - $1,351,968 | As arranged | As incurred | Us, Suppliers |
| (Note 8) | ||||
| Utility Deposits | $1,274 - $1,912 | As arranged | As incurred | Suppliers |
| (Note 9) | ||||
| Insurance | $5,625 - $12,375 | As arranged | As incurred | Insurers |
| Deposits – Three | ||||
| Months (Note 10) |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–23)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the estimated cost for construction and leasehold improvements ranges from $158,160 to $306,250. This investment covers the expenses related to the construction, construction management, and build-out of the Mrcool Center, including a showroom, according to Mrcool's specifications. However, this estimate excludes the costs of furniture, fixtures, and equipment.
The estimate assumes that the Mrcool Center will range from 25,000 to 100,000 square feet, with the actual size determined by planned growth and market potential. It also presumes that the location provided to the franchisee already has essential interior improvements, such as functional heating/cooling systems, lighting, electrical components, lavatories, a finished ceiling, prepared walls, and a concrete slab floor.
It's important to note that this estimate does not include architectural fees or other professional fees, except those charged by general contractors and licensed tradesmen. Additionally, it does not cover any special heating, cooling, or ductwork that the Mrcool Center might require. Prospective franchisees should factor in these potential additional costs when planning their initial investment.