Does the Mrcool Franchise Agreement require the franchisee to pay other obligations?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
Term of this Agreement, the then current standard form Franchise Agreement offered to new franchisees of MRCOOL Centers and any other agreements as Franchisor requires. Such agreements shall supersede this Agreement and its associated agreement in all respects, and the terms of Franchisor's then current agreements may differ from the terms in this Agreement, provided that such agreements shall provide for the same Royalty Fee, Advertising Contributions, and all other financial or monetary obligations established in this Agreement;
- (8) Unless Franchisee has met the requirements of Article 7.B. within the five year period immediately preceding the Transfer, the transferee, at its expense, must improve, modify, refurbish, renovate, remodel, and/or otherwise upgrade Franchisee's MRCOOL Center Facility to conform to the then current standards and specifications of Franchisor, and the transferee must complete such improvements, modifications, refurbishments, renovations, remodeling, and/or upgrading within the time period Franchisor reasonably specifies;
- (9) Franchisee, each Owner, and each Spouse shall remain liable for all obligations to Franchisor set forth in this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to the 2025 Mrcool Franchise Disclosure Document, franchisees have several potential financial obligations beyond the initial franchise fee, royalty fees, and advertising contributions.
The franchisee may incur expenses related to transferring the franchise. Specifically, if the franchisee has not met certain requirements within the five years before the transfer, the transferee (buyer) must pay to upgrade the Mrcool Center to current standards. The franchisee must also pay a Transfer Fee to Mrcool.
Additionally, if the Franchised Business is not being managed by a Managing Owner or Operating Manager who satisfactorily completed the Training Program, Mrcool is authorized to appoint a manager to maintain operations on behalf of the franchisee and has the right to charge fees and expenses for these management services. These Management Service Fees are immediately payable upon invoicing. These examples demonstrate that Mrcool franchisees should be prepared for a range of potential costs beyond the standard franchise fees.