Does the Mrcool FDD specify any requirements for the franchisee to use the franchisor's approved suppliers?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
materials including, but not limited to, System Supplies, as
designated by Franchisor and only from Franchisor or Franchisor's approved supplier(s); and (f) Purchase from distributors and other suppliers approved by Franchisor all other materials, inventory, goods, and supplies including, but not limited to, System Supplies, used in offering, selling, preparing, providing, marketing, and/or selling the Approved Services and Products.
- (3) Franchisor has and will periodically approve suppliers and distributors of the equipment, materials, supplies and products including, but not limited to, System Supplies, that meet Franchisor's standards, specifications, and requirements including, without limitation, standards, specifications, and requirements relating to the equipment and supplies to be used by the Franchised Business.
- (4) Franchisor, in Franchisor's Reasonable Business Judgment, may from time to time modify the list of approved brands, suppliers and distributors of System Supplies and approved equipment, supplies and services to be utilized by the Franchised Business and Franchisee shall, after receipt in writing of such modification, not reorder any brand and/or purchase from any supplier or distributor that is no longer designated or approved by Franchisor.
- (5) Franchisor reserves the right to designate from time to time a single supplier and/or distributor for any services, products, equipment, supplies, or materials including, but not limited to, the System Supplies and to require Franchisee to use such a designated supplier exclusively, which exclusive designated supplier and/or distributor may be Franchisor and/or Franchisor's affiliates. Franchisor and its affiliates may receive payments from suppliers and/or distributors on account of such supplier's or distributor's dealings with Franchisee and other franchisees and Franchisor may use all amounts so received without restriction and, for any purpose, including Franchisor's profit.
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 purchase equipment, materials, supplies, and products, including System Supplies, from suppliers and distributors approved by Mrcool. Mrcool may modify the list of approved suppliers and distributors, and franchisees must cease reordering from any supplier no longer approved after receiving written notice.
Mrcool reserves the right to designate a single exclusive supplier or distributor for any services, products, equipment, supplies, or materials, including System Supplies, and may require franchisees to use this designated supplier exclusively. This exclusive supplier or distributor may be Mrcool or its affiliates.
Furthermore, during the construction and operation of the franchised business, franchisees must exclusively use construction and decorating materials, furniture, fixtures, equipment, and signs that Mrcool has approved or designated in the Operations Manual. These items must be purchased from suppliers approved or designated by Mrcool, which may include Mrcool and its affiliates. Mrcool and its affiliates may receive payments from suppliers or distributors based on their dealings with franchisees, and Mrcool can use these amounts without restriction, including for profit.