Does the Mrcool FDD specify any limitations on the number of additional Mrcool Development Centers for which the initial franchise fee can be waived?

According to Mrcool's 2025 Franchise Disclosure Document, the initial franchise fee is waived for additional Development Centers beyond the first one, provided the franchisee remains in good standing. Specifically, if the franchisee is not in default of the MRCOOL Multi-Unit Development Agreement, including the Development Schedule, and neither the franchisee nor their affiliates are in default of any agreement with Mrcool, the Development Center Initial Franchise Fee for each additional center is $0. This waiver is applicable when signing the Franchise Agreement for each subsequent Development Center.

This waiver of the initial franchise fee for additional development centers is a significant benefit for franchisees looking to expand their operations within their development area. It reduces the upfront investment required for each new location, potentially accelerating the franchisee's growth and return on investment. However, it's crucial for franchisees to adhere strictly to the terms of the Multi-Unit Development Agreement and all other agreements with Mrcool to maintain eligibility for this fee waiver.

The Development Schedule, mentioned as a key condition for the fee waiver, likely outlines specific milestones and timelines for opening new Mrcool Centers. Failure to meet these deadlines or any other form of default could result in the loss of the fee waiver, making each additional center significantly more expensive to launch. Prospective franchisees should carefully review the Development Schedule and assess their ability to comply with its requirements before entering into the agreement. This structure encourages rapid and successful expansion, but also places considerable pressure on the franchisee to perform according to the agreed-upon timeline.