Does the Mrcool FDD specify any requirements for the franchisee to protect the franchisor's trademarks and intellectual property?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
17.B. CEASE OPERATIONS AND PROTECTION OF THE SYSTEM
Upon expiration, termination, or Transfer of this Agreement for any reason, Franchisee shall immediately:
- (1) Permanently cease to be a franchise owner of the Center that was the subject of this Agreement and cease to operate such Center under the System;
- (2) Refrain from directly or indirectly, holding oneself/itself out to any person or entity, or represent themselves/itself as a present or former MRCOOL franchisee;
- (3) Permanently cease to use, in any manner: (a) the System including, without limitation, the Confidential Information, the Licensed Marks, the Business Management System Data, and the Operations Manual; (b) any methods, procedures, or techniques associated with the System in which Franchisor possesses proprietary rights or that constitute Franchisor's trade secrets; (c) System Supplies, including communicating with or ordering products from Franchisor's designated suppliers and vendors of System Supplies; (d) the Approved Services and Products; and (e) any other advertising, marketing, media, and any other information, documents or things associated with Franchisor, the System, the Licensed Marks, MRCOOL Centers, the Franchised Business, and Franchisee's former MRCOOL Center, including, without limitation, any confidential, proprietary methods, procedures, descriptions of products, techniques, trade secrets, proprietary marks, distinctive forms, slogans, symbols, signs, stationary, advertising material, articles, logos, devices, items and all other things, tangible or intangible, associated with Franchisor, the System, the Licensed Marks, and MRCOOL Centers;
- (4) Return to Franchisor the Operations Manual (including any and all parts, supplements, and
copies of the Operations Manual), the Confidential Information (including without limitation the Business Management System Data and all customer lists and information), and all other confidential materials, equipment, software, information, and property owned by Franchisor and all copies thereof provided, however, that Franchisee may retain Franchisee's copies of this Agreement, correspondence between Franchisor and Franchisee, but not including Confidential Information that may be contained in or attached thereto, and other documents that Franchisee needs to retain pursuant to applicable law;
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, franchisees have several obligations to protect Mrcool's trademarks and intellectual property, particularly upon termination or transfer of the franchise agreement. Franchisees must immediately cease operating as a Mrcool franchise, refrain from representing themselves as a current or former franchisee, and discontinue using the Mrcool system, which includes confidential information, licensed marks, business management system data, and the operations manual.
Specifically, franchisees are prohibited from using any methods, procedures, or techniques associated with the Mrcool system in which Mrcool possesses proprietary rights or that constitute trade secrets. They must also stop using system supplies, approved services and products, and any advertising or marketing materials associated with Mrcool. This ensures that the franchisee does not continue to benefit from Mrcool's brand recognition and operational methods after the agreement ends.
Furthermore, the franchisee is required to return the operations manual, confidential information (including business management system data and customer lists), and all other confidential materials, equipment, software, and property owned by Mrcool. The franchisee can retain copies of the franchise agreement and correspondence, excluding any confidential information contained within those documents. These measures are in place to safeguard Mrcool's intellectual property and prevent unauthorized use or disclosure of sensitive business information.