Is Mrcool a fiduciary or trustee of the Brand Development Fund?

According to Mrcool's 2025 Franchise Disclosure Document, Mrcool is not required to segregate the Brand Development Fund from its general operating funds and is not a fiduciary or trustee of the Brand Development Fund. This means that Mrcool is not legally obligated to act in the best interests of the franchisees when managing the fund.

The Brand Development Fund is supported by a monthly contribution from franchisees, not to exceed 2% of monthly Gross Sales. Mrcool has broad discretion in how the fund is used, including for market studies, research, advertising, administrative costs, and other expenses related to marketing and development. Mrcool's company-owned centers or affiliate-owned centers may or may not contribute to the Brand Development Fund.

Mrcool will maintain unaudited financial records of the Brand Development Fund's expenditures and will make an unaudited accounting available to franchisees no more than once in any 12-month period. The Brand Development Fund will not be used to directly promote an individual franchisee's center or marketing area. This arrangement gives Mrcool significant control over the fund with limited oversight, which is a risk factor for franchisees who contribute to it.