Does the Mrcool Franchise Agreement require the franchisee to adhere to specific operating procedures?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor shall provide Franchisee with access to the Operations Manual. The Operations Manual contains, as designated and determined by Franchisor, mandatory and, as applicable, suggested specifications, standards and operating procedures that Franchisor prescribes for MRCOOL Centers. Franchisee shall operate the Franchised Business in strict accordance with the standards, specifications, and requirements set forth in the Operations Manual as, such standards, specifications, and requirements including, but not limited to, the Approved Services and Products, System Supplies, and, authorized and designated suppliers, as of the Effective Date of this Agreement, and, as they may be supplemented, modified, changed, and/or replaced in the future and, from time to time, by Franchisor, in Franchisor's Reasonable Business Judgment. Franchisee shall keep and maintain the confidentiality of the Operations Manual and, shall keep and maintain all files, data and information contained in the Operations Manual in a secure location and/or in a protected confidential state and, as otherwise directed by Franchisor. The master copy and official version of the Operations Manual is and shall be the copy and/or version maintained and designated by Franchisor in Franchisor's ordinary course of business.
Franchisor shall provide Franchisee with reasonable notice of modifications and changes made to the Operations Manual and, such notice may take form of electronic communications including emails and, if the Operations Manual is maintained on an online web based platform, notifications within said platform. Franchisor shall provide Franchisee with a reasonable period of time, as determined by Franchisor, in Franchisor's Reasonable Business Judgment, to implement change and modifications to the as set forth in the Operations Manual. Without limitation to the foregoing, Franchisee may only offer and sell the Approved Services and Products and utilize the System Supplies as designated by Franchisor, in Franchisor's Reasonable Business Judgment, in the Operations Manual and, in accordance with the terms, specifications and requirements set forth in the Operations Manual and as Franchisor may supplement and modify the Operations Manual from time to time or, as Franchisor may otherwise designate in writing.
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, franchisees must strictly adhere to the standards, specifications, and operating procedures outlined in the Operations Manual. The Operations Manual contains mandatory and suggested guidelines that Mrcool prescribes for its centers. These standards cover various aspects, including approved services and products, system supplies, and authorized suppliers, effective from the agreement date and subject to future modifications by Mrcool.
Franchisees receive access to the Operations Manual and are expected to maintain its confidentiality, securing all its data and information as directed by Mrcool. Mrcool will provide reasonable notice of any changes to the Operations Manual, potentially through electronic communications or online platform notifications, allowing franchisees a reasonable period to implement these changes. Franchisees are obligated to offer and sell only the approved services and products and use the system supplies designated by Mrcool, as detailed in the Operations Manual or otherwise communicated in writing.
Adherence to these operating procedures, as well as the terms of the Franchise Agreement and Mrcool's System standards, is crucial for the consistent operation of all Mrcool Centers and the overall System. Failure to comply with the Operations Manual or any disclosure of its contents to unauthorized parties can result in termination of the agreement. This ensures that all franchisees maintain a uniform standard of quality and service, protecting the Mrcool brand and reputation.
Upon termination or transfer of the agreement, franchisees must cease operating under the Mrcool System and return the Operations Manual and all confidential materials to Mrcool. This further emphasizes the importance of the Operations Manual as a core component of the Mrcool franchise and the necessity for franchisees to follow its guidelines to maintain brand consistency and operational standards.