What is the 'First Development Center' in the Mrcool Multi-Unit Development Agreement?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
FIRST DEVELOPMENT CENTER: The Development Center Initial Franchise Fee for the First Development
Center is: $50,000, payable and due upon execution of the applicable Franchise Agreement for the First Development Center. This initial franchise fee is separate from and in addition to the Development Area Fee.
Development Center Initial Franchise Fee for Other Development Centers
OTHER AUTHORIZED DEVELOPMENT CENTERS: Provided that Franchisee is not in default of the terms of this MRCOOL Multi-Unit Development Agreement (including but not limited to the Development Schedule set forth below) and that neither Franchisee nor Franchisee's affiliates are in default of any Franchise Agreement or other agreement with Franchisor, the Development Center Initial Franchise Fee for each additional Development Center (over and above the First Development Center), is: $0 (Waived), payable at the time of signing the Franchise Agreement for each Development Center.
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the 'First Development Center' refers to the initial Mrcool Center that the franchisee is obligated to develop and operate within a designated Development Area, as part of a Multi-Unit Development Agreement.
The initial franchise fee for this First Development Center is $50,000, which is payable upon the execution of the Franchise Agreement specific to that location. This fee is separate from, and in addition to, the Development Area Fee.
For any additional Mrcool Development Centers beyond the first, the initial franchise fee is waived ($0), provided the franchisee remains in compliance with the terms of the Multi-Unit Development Agreement, including adherence to the Development Schedule, and is not in default of any other agreements with Mrcool. This waiver is applicable at the time of signing the Franchise Agreement for each subsequent Development Center.