According to Mrcool's 2025 Franchise Disclosure Document, Section 2 of the franchise agreement outlines the development rights granted to the franchisee. However, Section 2.2, specifically, details the limited exclusivity and reserved rights that Mrcool retains. This means that while Mrcool grants the franchisee the right to develop Mrcool Centers within a specific Development Area, this right is not absolute.

The franchisee's rights are subject to compliance with the terms of the agreement, including the Development Schedule and the individual Franchise Agreements for each center. As long as the franchisee adheres to these terms, Mrcool agrees not to open, operate, or license any third party to open or operate Mrcool Centers within the Development Area during the agreement's term.

However, the agreement also clarifies that the designated territory for each Development Center will be determined by the Franchise Agreement for each respective center. This means that the operating territories for the franchisee's Development Centers, in aggregate, may be smaller than the overall Development Area. This is a critical point for prospective franchisees to understand, as it defines the scope of their exclusive operating rights and the potential for Mrcool to authorize other franchisees or operate its own centers in the broader Development Area, outside of the franchisee's specific territories.