factual

Does the Mrcool franchise agreement include a clause regarding specific performance and injunctive relief?

Mrcool Franchise · 2025 FDD

Answer from 2025 FDD Document

ch modification is in writing and signed by Franchisor) by limiting the scope of the Prohibited Activities, narrowing the definition of a Competitive Business, shortening the duration of the Post-Term Restricted Period, reducing the geographic scope of the Restricted Territory and/or reducing the scope of any other covenant imposed upon Franchisee under this Article 6 to ensure that the terms and covenants are enforceable under applicable law.

6.H. BREACH OF RESTRICTIVE COVENANTS AND OBLIGATIONS

Franchisee agrees that Franchisee's failure and/or Franchisee's Owner(s) failure to comply with the restrictive covenants and obligations set forth in this Article 6 will cause irreparable harm to Franchisor and/or other MRCOOL Center franchisees for which there is no adequate remedy at law. Franchisee agrees that any violation of these Article 6 covenants and obligations by either Franchisee and/or any Owner(s) will entitle Franchisor to injunctive relief. Franchisee agrees that Franchisor may apply for such injunctive relief, without bond, but upon due notice, in addition to such further and other relief as may be available at equity or law, and the sole remedy of Franchisee, in the event of the entry of such injunction, will be the dissolution of such injunction, if warranted, upon a hearing duly held (all claims for damages by reason of the wrongful issuance of any such injunction being expressly waived hereby). If a court requires the filing of a bond notwithstanding the preceding sentence, the Franchisee and Franchisor agree that the amount of the bond shall not exceed $1,000. Franchisor's remedies under this Article 6.H. are not exclusive of any other, but may be combined with others under this Agreement, or at law or in equity, including injunctive relief, specific performance and recovery of monetary damages.

6.I. OWNERSHIP OF INNOVATIONS, IMPROVEMENTS, AND INFORMATION

Franchisee agrees that with regard to the Franchised Business all customer lists and their contents and information represent Confidential Information and constitute an asset of Franchisor whether or not such information was supplied by Franchisor. During the Term of this Agreement and in connection with the development, establishment, marketing, promotion and operation of the Franchised Business, Franchisee shall disclose to Franchisor all of Franchisee's ideas, concepts, methods and products conceived or developed by Franchisee and Franchisee's affiliates, Owners, agents, and employees relating to the development and operation of MRCOOL Centers. Franchisee hereby assigns to Franchisor and Franchisee agrees to procure from Franchisee's Owners, affiliates and employees assignment of any such ideas,

concepts, methods, and products that Franchisee is required to disclose to Franchisor under this Article 6.I. Franchisor shall have no obligation to make any lump sum or on-going payments to Franchisee or Franchisee's Owners, affiliates or employees with respect to any such idea, concept, method, technique or product. Franchisee agrees that Franchisee will not use nor will Franchisee allow any other person or entity to use any such concept, method or product without obtaining Franchisor's prior written approval.

ARTICLE 7 OPERATING STANDARDS

7.A. OPERATIONS, MAINTENANCE, AND APPEARANCE

At all times, Franchisee and the Franchised Business shall: (a) exclusively offer and sell the Approved Services and Products as designated by Franchisor in the Operations Manual and/or as otherwise designated by Franchisor in writing and as may be modified by Franchisor from time to time;

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

What This Means (2025 FDD)

According to the 2025 Mrcool Franchise Disclosure Document, the franchise agreement does address specific performance and injunctive relief. Specifically, Mrcool retains the right to seek specific performance of the agreement's provisions and injunctive relief against actions that could harm the brand, its licensed marks, or the overall system. This means Mrcool can go to court to compel a franchisee to fulfill their contractual obligations or to stop them from engaging in activities that violate the agreement.

Additionally, the agreement states that a franchisee's failure to comply with restrictive covenants and obligations can cause irreparable harm to Mrcool and its other franchisees. In such cases, Mrcool is entitled to injunctive relief. Mrcool can pursue this relief without needing to post a bond, although if a court requires a bond, the amount is capped at $1,000. The remedies available to Mrcool, including injunctive relief and specific performance, are not exclusive and can be combined with other legal or equitable remedies, such as monetary damages.

Furthermore, franchisees also agree that failure to comply with the terms of the Franchise Agreement will cause irreparable harm to Mrcool Franchising, LLC, and other Mrcool franchisees for which there is no adequate remedy at law. Therefore, Mrcool Franchising, LLC, is entitled to injunctive relief. The franchisee waives any right to challenge the terms of the agreement as being overly broad, unreasonable, or otherwise unenforceable.

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.