Does the Mrcool FDD specify any requirements for the location of the additional Mrcool Development Centers to qualify for the initial franchise fee waiver?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
opment Agreement – Schedule A** DEVELOPMENT INFORMATION SHEET
| A. List of State Administrators | G. List of Franchisees | |---|---| | B. List of Agents for Service of Process | H. List of Franchisees Who Have Left the System | | C. Operations Manual Table of Contents | I. State Specific Addenda | | D. Financial Statements | J. State Effective Dates | | E. Franchise Agreement | K. Receipts | | F. Multi-Unit Development Agreement | | [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
FIRST DEVELOPMENT CENTER: The Development Center Initial Franchise Fee for the First Development
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to the 2025 Mrcool FDD, the document does not specify particular location requirements for additional Mrcool Development Centers to qualify for the initial franchise fee waiver. However, to qualify for the waiver of the Development Center Initial Franchise Fee for each additional Development Center, the franchisee must not be in default of the MRCOOL Multi-Unit Development Agreement, including the Development Schedule. Additionally, neither the franchisee nor their affiliates can be in default of any Franchise Agreement or other agreement with Mrcool.
The initial franchise fee for the first Development Center is $50,000, payable upon execution of the Franchise Agreement. This fee is separate from the Development Area Fee. For each additional Development Center beyond the first, the Development Center Initial Franchise Fee is $0 (waived), payable at the time of signing the Franchise Agreement for each Development Center, provided the franchisee meets the aforementioned conditions.
While the FDD does not explicitly state location requirements for the additional centers to get the fee waiver, it does emphasize the importance of adhering to the Development Schedule and remaining in good standing with Mrcool. A prospective franchisee should clarify with Mrcool what specific criteria or approvals are needed for the location of these additional Development Centers to ensure compliance and eligibility for the fee waiver.