What is Exhibit 2 of the Mrcool Franchise Agreement?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
| Changes in assets and liabilities: | | | | | |---|---|---|---|---| | Increase in assets: | | | | | | Prepaid expenses | (1,080) | | | -0- | | Increase in liabilities: | | | | | | Provision for LLET tax | 175 | | -0- | | | Net cash used by operating activities | (19,507) | (5,025) | | | | CASH FLOWS FROM FINANCING ACTIVITIES | | | | | | Proceeds from related party payables | 25,648 | | 5,025 | | | Payments on related party payables | (5,294) | | | -0- | | Net cash provided by financing activities | 20,354 | | 5,025 | | | NET INCREASE IN CASH | 847 | | -0- | | | CASH AT BEGINNING OF YEAR | | -0- | | -0- | | CASH AT END OF YEAR | 847 | | -0- | | | SUPPLEMENTAL CASH FLOW DATA | | | | | | Interest paid | 25 | | -0- | | | Income tax paid | | -0- | | -0- |
Franchise Agreement – Exhibit 2 Confidentiality Agreement
[THIS EXHIBIT IS FOR REFERENCE PURPOSES ONLY AS A SAMPLE FORM CONFIDENTIALITY AGREEMENT THAT FRANCHISOR MAY APPROVE FOR USE BY FRANCHISEE – BEFORE USING WITH AN EMPLOYEE OR CONTRACTOR FRANCHISEE SHOULD HAVE THIS AGREEMENT REVIEWED AND APPROVED BY AN INDEPENDENT LOCAL ATTORNEY HIRED BY FRANCHISEE]
CONFIDENTIALITY AGREEMENT (Sample Only)
This Agreement (the "Agreement") is entered into by the undersigned ("you") in favor of:
Recitals and Representations
WHEREAS, we are the owners of a licensed MRCOOL Center (hereinafter referred to as the "MRCOOL Center") that we independently own and operate as a franchisee;
WHEREAS, you are or are about to be an employee, independent contractor, officer and/or director of a MRCOOL Center that is independently owned and operated by us;
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to the 2025 Mrcool Franchise Disclosure Document, Exhibit 2 of the Franchise Agreement is a sample Confidentiality Agreement. This agreement is intended for use by the franchisee with their employees or contractors.
The FDD emphasizes that the provided Confidentiality Agreement is a sample form and recommends that Mrcool franchisees seek independent legal counsel to review and approve the agreement before using it with any employee or contractor. This is to ensure that the agreement complies with local laws and adequately protects the franchisee's confidential information.
The Confidentiality Agreement states that Mrcool Franchising, LLC, while not a party to the agreement between the franchisee and their employee/contractor, is an intended third-party beneficiary. This means Mrcool retains certain rights and protections under the agreement, particularly concerning the confidentiality of information related to the Mrcool system. The agreement clarifies that it is solely a confidentiality agreement and not an employment agreement.