factual

Where can I find the important provisions of the Mrcool franchise and related agreements?

Mrcool Franchise · 2025 FDD

Answer from 2025 FDD Document

THE FRANCHISE RELATIONSHIP

This table lists certain important provisions of the Franchise and related agreements. You should read these provisions in the agreements attached to this Disclosure Document.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–50)

What This Means (2025 FDD)

According to Mrcool's 2025 Franchise Disclosure Document, Item 17 provides a table that summarizes important provisions within the franchise and related agreements. Both single-unit and multi-unit agreements are covered. The FDD indicates that prospective franchisees should carefully review the actual agreements attached to the disclosure document to understand these provisions fully.

The table outlines key aspects of the Mrcool franchise relationship, including obligations upon termination or non-renewal, conditions for transfer, and non-competition covenants. For instance, it details the franchisee's responsibilities when the agreement ends, such as ceasing operations, de-identifying the location, and adhering to non-compete restrictions. It also specifies conditions under which a franchisee can transfer their business, including Mrcool's right of first refusal.

For multi-unit development agreements, the FDD notes that non-competition covenants during the term of the franchise and after termination or expiration are not applicable at the multi-unit level. However, each individual Mrcool Center developed under the agreement will be subject to the non-competition terms outlined in its respective Franchise Agreement. This distinction is important for those considering developing multiple Mrcool locations.

The table also addresses dispute resolution, choice of law, and modification of the agreement. It states that Kentucky law governs the agreement, and disputes must first be submitted to non-binding mediation in Graves County, Kentucky, followed by binding arbitration in the same location if mediation fails. Modifications to the agreement generally require a written agreement, although Mrcool can unilaterally change the manuals or reduce restrictive covenants. These provisions dictate how disagreements will be handled and what legal framework applies to the franchise relationship.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.