Does the Mrcool FDD specify any circumstances under which the franchisee can request a modification to the Development Schedule?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees and represents that it has conducted its own independent investigation and analysis of the prospects for the establishment of MRCOOL Centers within the Development Area, that Franchisee approves of the Development Schedule as being reasonable and viable, and that Franchisee recognizes that failure to achieve the results described in the Development Schedule will constitute a material breach of this Agreement with time being of the essence.
Franchisee agrees that what constitutes Franchisor's then current Franchise Agreement shall be determined by Franchisor, in Franchisor's exclusive discretion and that, among other things, the Franchise Agreement may be modified from time to time by Franchisor and that reasonable modification and amendments to the Franchise Agreement will not alter Franchisee's obligations under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
The 2025 Mrcool FDD states that franchisees must adhere to the Development Schedule, and failure to do so constitutes a breach of the agreement. The franchisee acknowledges the Development Schedule is reasonable and viable. The FDD does not explicitly outline any specific circumstances under which a franchisee can formally request a modification to the Development Schedule.
However, the FDD does mention that the Franchise Agreement may be modified from time to time by Mrcool, and reasonable modifications and amendments to the Franchise Agreement will not alter the franchisee's obligations under the Development Agreement. While this clause refers to modifications of the Franchise Agreement itself, it suggests a degree of flexibility within the overall franchising relationship.
Given the lack of explicit procedures for requesting modifications to the Development Schedule, prospective Mrcool franchisees should directly engage with Mrcool to understand if any informal processes exist for requesting adjustments due to unforeseen circumstances. Understanding Mrcool's willingness to accommodate potential delays or changes in the development timeline is crucial before committing to the agreement.