Does the Mrcool Franchise Agreement require the franchisee to adhere to specific advertising standards?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) Franchisee shall, at all times, ensure that all advertising and promotion of the Franchised Business by Franchisee is completely factual and, conforms to the highest standards of ethical advertising, and is in conformity with Franchisor's standards and specifications.
Franchisee shall refrain from any business practice, advertising practice, or personal conduct that may be injurious to Franchisor, the System, MRCOOL Centers, and the Licensed Marks.
Franchisor, in Franchisor's sole discretion, shall possess, among other things, the unilateral right to reject any and all advertising relating to the Franchised Business, Franchisor, the System, MRCOOL Centers and/or using the Licensed Marks.
- (1) In addition to calendar year quarterly reports, Franchisee shall provide Franchisor with monthly reports documenting Franchisee's marketing initiatives, expenses incurred, placements secured, and other metrics and financial information as designated by Franchisor;
- (2) Prior to opening the Franchised Business, Franchisee shall submit to Franchisor, Franchisee's grand opening marketing plan for review and approval by Franchisor. Franchisee shall use only those portions of its grand opening marketing that are pre-approved by Franchisor and consistent with Franchisor's standards and specifications. Not less than 30 days prior to the opening of the Franchised Business, Franchisee shall spend not less than $2,000 to market and promote the grand opening of the Franchised Business in accordance with Franchisor's standards and specifications;
- (3) At all times, Franchisee's marketing efforts and the distribution of each marketing channel and media engaged by Franchisee must be directly targeted to Franchisee's Designated Territory. Franchisee shall not direct or target Franchisee's marketing efforts with the purpose or effect of soliciting or attracting customers outside of Franchisee's Designated Territory. To the extent that Franchisee's marketing efforts involve a marketing medium or distribution channel that is targeted to Franchisee's Designated Territory but reaches outside of and beyond Franchisee's Designated Territory Franchisor, in Franchisor's Reasonable Business Judgment, shall have the right to direct and require Franchisee to discontinue such marketing; and
- (4) At all times, Franchisee hereby grants to Franchisor the right, without compensation to Franchisee, to use Franchisee's name, address, photograph, and biographical information in any publication related to the System, including in relation to the sale of MRCOOL Center franchises.
Franchisor reserves the right to collect Franchisee's local marketing requirement directly and utilize those funds to market directly in Franchisee's Designated Territory, in Franchisor's Reasonable Business Judgment.
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, franchisees must adhere to specific advertising standards. Mrcool requires that all advertising and promotion of the Franchised Business be completely factual, conform to the highest standards of ethical advertising, and comply with Mrcool's standards and specifications. Mrcool has the right to reject any and all advertising relating to the Franchised Business, Mrcool, the System, MRCOOL Centers and/or using the Licensed Marks. Franchisees are prohibited from any business, advertising, or personal conduct that may harm Mrcool, the System, MRCOOL Centers, and the Licensed Marks.
Prior to opening, franchisees must submit their grand opening marketing plan to Mrcool for review and approval, using only pre-approved portions consistent with Mrcool's standards. Franchisees must spend at least $2,000 on marketing and promoting the grand opening, following Mrcool's standards. All marketing efforts must target the franchisee's Designated Territory, and Mrcool can require franchisees to discontinue marketing that extends beyond this territory.
Franchisees must provide monthly reports documenting their marketing initiatives, expenses, placements, and other metrics as designated by Mrcool, in addition to calendar year quarterly reports. Mrcool reserves the right to use a franchisee's name, address, photograph, and biographical information in any publication related to the System, without compensating the franchisee. Mrcool also reserves the right to collect the franchisee's local marketing requirement directly and use those funds to market directly in the franchisee's Designated Territory.