Where in the Mrcool FDD can I find information about the reservation of rights?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
2.D. RESERVATION OF RIGHTS
Franchisor on behalf of itself, its affiliates, parents, and its assigns retains all rights, on any and all terms and conditions that Franchisor deems advisable and without any compensation or consideration to Franchisee to engage in the following activities (the "Reserved Rights"): (a) operate and grant to others the right to operate a Franchised Business, MRCOOL Center and/or other Centers using the System and Licensed Marks at locations outside Franchisee's Designated Territory; (b) acquire or merge with or otherwise affiliate with one or more businesses of any kind, including businesses that are Competitive Businesses, and after such acquisition, merger or affiliation to own and operate and to franchise or license others to own and operate and to continue to own and operate such businesses, including Competitive Businesses (but not utilizing the Licensed Marks) within Franchisee's Designated Territory; (c) be acquired by or merge with or otherwise affiliate with one or more businesses of any kind, including businesses that are Competitive Businesses, even if such business or businesses presently or, in the future, own and operate and franchise or license others to own and operate such businesses, including Competitive Businesses (but not utilizing the Licensed Marks) within Franchisee's Designated Territory; (d) use the Licensed Marks and System to distribute the Approved Services and Products or products and services similar to the Approved Services and Products in Alternative Channels of Distribution within or outside Franchisee's Designated Territory; (e) operate and grant to others the right to operate a MRCOOL Center at Captive Markets, both within and outside Franchisee's Designated Territory; and (f) use the Licensed Marks and System and to license others to use the Licensed Marks and System to engage in all other activities not expressly prohibited by this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, information regarding the franchisor's reservation of rights can be found in Item 23, specifically under section 2.D. This section outlines the activities that Mrcool, its affiliates, parents, and assigns retain the right to engage in without providing compensation to the franchisee.
The reserved rights include the ability to operate or franchise Mrcool businesses outside the franchisee's designated territory, engage in mergers or acquisitions with other businesses (even competitive ones), distribute approved services and products through alternative channels, operate Mrcool Centers in Captive Markets, and engage in activities not expressly prohibited by the franchise agreement.
For a prospective franchisee, this means that Mrcool retains significant control over its brand and distribution channels, even within or near a franchisee's territory. It is important to carefully consider these reserved rights and understand how they might impact the franchisee's business operations and potential market. Franchisees should seek clarification from Mrcool regarding the scope and potential impact of these reserved rights before entering into a franchise agreement.