factual

Does the Mrcool Franchise Agreement allow the franchisee to operate the Center from any location?

Mrcool Franchise · 2025 FDD

Answer from 2025 FDD Document

Center from a fixed Center Location located within a specified territory. Relying on the representations made by Franchisee and/or Franchisee's Owners in any submitted application and during the application process and, subject to the terms and conditions of this Agreement, Franchisee's request has been approved by Franchisor, subject to the following terms and conditions:

  • (1) During the Term of this Agreement and subject to the rights of Franchisor including, but not limited to, the Reserved Rights, Franchisor grants to Franchisee and Franchisee accepts, the nonexclusive license, right and obligation to develop and operate, one MRCOOL Center in conformity with the System and this Agreement from a single fixed Center location, selected by Franchisee but requiring the approval of Franchisor ("Franchisee's Center Location") and, as designated by Franchisor in Franchisor's discretion and Reasonable Business Judgment, within a Designated Territory;
  • (2) If, as of the Effective Date, Franchisee has selected a proposed Center Location that Franchisor approves as Franchisee's Center Location, then Franchisee's Center Location and Designated Territory, if any, shall be identified in Schedule 1 of this Agreement. To be effective, Schedule 1 must be completed and signed by Franchisor. Franchisee's execution of Schedule 1 with a specific location for Franchisee's Center Location shall constitute Franchisee's obligation to develop and operate the Franchised Business at the designated Franchisee Center Location;
  • (3) If, as of the Effective Date, Franchisee has not selected a proposed Center Location, and/or has not obtained Franchisor's approval of the proposed Center Location, and/or Schedule 1 to this Agreement is left incomplete or is not signed by Franchisor, Franchisee must locate, identify and secure a Center Location for the Franchised Business in accordance with the terms of this Agreement, including the requirement that Franchisee must obtain Franchisor's approval of

Franchisee's Center Location. If, after the Effective Date, Franchisee proposes and Franchisor approves of Franchisee's proposed Center Location, such approval must be in writing and must be evidenced by Franchisor's execution of Schedule 1 with a specific Center Location designated and identified in Schedule 1. At the time of executing a completed Schedule 1 and, thereby, approving Franchisee's proposed Center Location, Franchisor, in Franchisor's discretion and Reasonable Business Judgment, shall designate and determine Franchisee's Designated Territory;

  • (4) If, as of the Effective Date or other appropriate periods after the Effective Date, Franchisee has not selected a proposed Center Location that is approved by Franchisor but, Franchisee has identified an area in which Franchisee may look to secure a Center location for the Franchised Business, Franchisor, in Franchisor's discretion and Reasonable Business Judgment, may enter into the Site Selection Acknowledgment attached to this Agreement as Exhibit 3.

Source: Item 23 — RECEIPTS (FDD pages 55–263)

What This Means (2025 FDD)

According to Mrcool's 2025 Franchise Disclosure Document, franchisees cannot operate their Mrcool Center from any location. The agreement specifies that the franchisee must operate from a single, fixed location that Mrcool approves. This location is referred to as "Franchisee's Center Location."

The FDD states that if a franchisee has already selected a location that Mrcool approves by the effective date of the agreement, this location will be identified in Schedule 1 of the agreement. The franchisee's execution of Schedule 1 with a specific location obligates them to operate the franchised business at that designated location. If a location hasn't been selected or approved by the effective date, the franchisee must find and secure a location that Mrcool approves. This approval must be in writing and evidenced by Mrcool's execution of Schedule 1 with the specific location identified.

This requirement ensures that all Mrcool Centers meet the brand's standards and are appropriately situated within a designated territory. The designated territory is determined by Mrcool in its reasonable business judgment. If Schedule 1 is not completed or signed by Mrcool, there is no designated territory. This location approval process is a common practice in franchising to maintain brand consistency and market coverage.

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.