Does the Mrcool FDD specify any exceptions to the waiver of the Development Center Initial Franchise Fee?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
| Development Center Initial Franchise Fee for Other Development Centers | |
|---|---|
| OTHER AUTHORIZED DEVELOPMENT CENTERS: Provided that Franchisee is not in default of the | |
| terms of this MRCOOL Multi-Unit Development Agreement (including but not limited to the Development | |
| Schedule set forth below) and that neither Franchisee nor Franchisee’s affiliates are in default of any Franchise | |
| Agreement or other agreement with Franchisor, the Development Center Initial Franchise Fee for each additional | |
| Development Center (over and above the First Development Center), is: $0 (Waived), payable at the time of | |
| signing the Franchise Agreement for each Development Center. |
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the Development Center Initial Franchise Fee is waived for additional Development Centers beyond the first, provided certain conditions are met. The initial franchise fee for the first Development Center is $50,000.
For each additional Development Center, the $0 (waived) fee is applicable only if the franchisee is not in default of the MRCOOL Multi-Unit Development Agreement. This includes adhering to the Development Schedule. Furthermore, neither the franchisee nor their affiliates can be in default of any Franchise Agreement or other agreement with Mrcool.
This waiver presents a significant financial benefit to Mrcool franchisees looking to expand, but it's contingent on strict compliance with all agreements and schedules. Failure to meet these obligations could result in the loss of the fee waiver, requiring the franchisee to pay the standard initial franchise fee for each additional Development Center.