Does the Mrcool Franchise Agreement require the franchisee to pay fees to Franchisor's designees?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
designated by Franchisor, a Royalty and Activity Reports containing information as designated by Franchisor and relating to the Gross Sales, financial performance, and operations of the Franchised Business for the preceding monthly Accounting Period (the "Royalty and Activity Report"). Franchisor shall have the right to verify such royalty payments from time to time, as it deems necessary in any reasonable manner.
5.C. OTHER FEES
As designated by Franchisor in this Agreement, the Operations Manual, or otherwise, Franchisee shall pay to Franchisor and/or as otherwise directed by Franchisor, each of the following additional fees:
- (1) Technology Fee Throughout the Term of this Agreement, Franchisee shall pay to Franchisor a continuing monthly non-refundable technology fee (the "Technology Fee"). Franchisor, in Franchisor's Reasonable Business Judgment, possesses the right, at any and all times throughout the Term of this Agreement, to implement and charge Franchisee a monthly Technology Fee in an amount designated by Franchisor but provided that such monthly fee does not exceed $3,000 per month. The Technology Fee is a general administrative fee and is not connected to any particular service. The Technology Fee shall be paid to Franchisor each and every month on the Due Date.
- (2) Brand Development Fund Fee Franchisee shall pay to Franchisor, Franchisor's affiliates, or Franchisor's designees the Brand Development Fund Fee as set forth in Article 9.A. of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, franchisees are required to pay certain fees to Mrcool's designees. Specifically, the franchisee must pay the Brand Development Fund Fee, business management system fees, online ordering fees, and quality assurance audit fees to Mrcool, its affiliates, or its designees.
This means that in addition to fees paid directly to Mrcool, franchisees must also budget for payments to third-party vendors or affiliates that Mrcool designates. These fees cover various aspects of the business, including brand development, business management systems, online ordering platforms, and quality assurance programs. The amounts and frequency (weekly, monthly, or per use) of these fees are determined by Mrcool in its reasonable business judgment.
It is important for prospective Mrcool franchisees to understand that these fees are ongoing and can impact their overall profitability. Franchisees should carefully review Article 9.A of the Franchise Agreement, as referenced in the quote, to fully understand the scope and potential cost of these fees. Additionally, franchisees should inquire about the specific designees Mrcool uses and the historical costs associated with these services to better estimate their financial obligations.