What is Exhibit A in the Collateral Assignment of Lease for a Mrcool franchise?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
| For Value Received, the undersigned ("Assignor") hereby assigns and transfers to MRCOOL Franchising, |
|---|
| LLC ("Assignee"), all of Assignor's right, title and interest as tenant in, to and under a certain lease, a copy |
| of which is attached hereto as $\underline{\text{Exhibit A}}$ (the "Lease") for the following premises (the "Leased Premises"): |
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, Exhibit A in the Collateral Assignment of Lease is a copy of the lease agreement for the premises. The document states that the Assignor (the franchisee) transfers their rights and interests as a tenant to Mrcool Franchising, LLC (the Assignee) under the lease. This assignment is secured by attaching a copy of the lease as Exhibit A, which defines the specific premises being leased.
This means that as part of the franchise agreement, Mrcool requires franchisees to provide a collateral assignment of their lease, giving Mrcool certain rights related to the lease. This is a fairly common practice in franchising, especially for brick-and-mortar businesses, as it gives the franchisor some control over the location if the franchisee defaults or leaves the system.
The franchisee should carefully review the lease agreement and the collateral assignment to understand the full implications. They should pay close attention to the conditions under which Mrcool can take over the lease, as well as any restrictions on modifying or terminating the lease without Mrcool's consent. It is important for the franchisee to understand their obligations and the franchisor's rights regarding the leased premises.
Prospective franchisees should consult with a legal professional to fully understand the terms and conditions of the Collateral Assignment of Lease and how it may impact their rights and obligations as a tenant. This will help ensure they are making an informed decision before entering into the franchise agreement with Mrcool.