Does the Mrcool FDD specify any requirements for the franchisee to comply with all applicable laws and regulations in operating the Development Centers?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
Prior to constructing, equipping and building out Franchisee's Center Facility and Franchisee's Center Location, Franchisee shall:
- (2) Obtain all required building, utility, sign, health, sanitation, and business permits and licenses, and any other required permits and licenses;
- (3) Construct all required improvements to Franchisee's Center Location, purchase and install all required furniture, fixtures and equipment and decorate the premises in compliance with the plans and specifications approved in writing by Franchisor and all applicable ordinances, building codes, permit requirements and lease or deed requirements and restrictions;
Franchisee further certifies that Franchisee and each Owner are not listed on the Annex to Executive Order 13244 (the Annex is available at http://www.treasury.gov) and will not become so listed, hire any person so listed, or have dealings with any person so listed.
Franchisee agrees to immediately notify Franchisor if Franchisee or any Owner become so listed. "Anti-Terrorism Laws" refers to and means Executive Order 13224 issued by the President of the United States, the USA PATRIOT Act, and all other present and future federal, state and local laws, ordinances, regulations, policies, lists and any other requirements of any governmental authority addressing, or in any way relating to, terrorist acts and acts of war.
If Franchisee, an Owner, or Franchisee's employees violate any of the Anti-Terrorism Laws and/or become listed on the Annex
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, franchisees are required to comply with applicable laws and regulations in several aspects of operating their Development Centers. Specifically, before constructing and equipping their Center Facility and Location, franchisees must obtain all required building, utility, sign, health, sanitation, and business permits and licenses, as well as any other necessary permits and licenses. Franchisees must also construct all required improvements to their Center Location, and purchase and install all required furniture, fixtures, and equipment in compliance with all applicable ordinances, building codes, permit requirements, and lease or deed restrictions.
Furthermore, Mrcool franchisees must comply with anti-terrorism laws. Franchisees must certify that they and each owner are not listed on the Annex to Executive Order 13244 and will not become so listed, hire any person so listed, or have dealings with any person so listed. Franchisees are obligated to immediately notify Mrcool if they or any owner become listed. Violation of anti-terrorism laws may result in immediate termination of the franchise agreement without prior notice.
These stipulations ensure that Mrcool franchisees operate their businesses in accordance with legal and regulatory standards, maintaining the integrity and reputation of the Mrcool brand. Franchisees should be aware of these compliance requirements and ensure they adhere to all applicable laws and regulations to avoid potential penalties or termination of their franchise agreement.