Does the Mrcool FDD specify any required actions to demonstrate compliance with the Development Schedule?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that Franchisee must: (a) open and commence the operations of each new Development Center in accordance with the Development Schedule for each respective Development Period, as set forth in this Agreement; and (b) maintain in operation the minimum cumulative number of Development Centers in accordance with the Development Schedule for each respective Development Period. Franchisee agrees that "time is of the essence" with respect to Franchisee's development obligations under this Agreement, and that Franchisee's failure to comply with the Development Schedule is grounds for immediate termination of this Agreement and, any future development rights granted under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to the 2025 Mrcool FDD, franchisees with development rights must adhere to a specific Development Schedule. The FDD states that the franchisee must open and commence operations for each new Development Center according to the Development Schedule for each Development Period. Additionally, the franchisee must maintain the minimum cumulative number of Development Centers in operation as per the Development Schedule for each Development Period.
The Development Schedule and Development Period are defined in Section 4.4 of the agreement. The Development Information Sheet, which contains specific details regarding the Development Area and the number of required Development Centers, is attached as Schedule A to the agreement and must be signed by Mrcool to be effective.
Time is of the essence with respect to the franchisee's development obligations, and failure to comply with the Development Schedule can result in immediate termination of the agreement and any future development rights. Franchisees must also execute Mrcool's current standard Franchise Agreement for each Mrcool Center they develop, own, and open in the Development Area. This agreement must be executed before leasing or purchasing the real estate for the center location or six months prior to the required opening date as per the Development Schedule.