After the Mrcool franchise is terminated or expires, for how long must I refrain from involvement in a competing business?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
| r. | Non-competition covenants after the franchise is terminated or expires | 6, 17.E. | No involvement, ownership or interest whatsoever for 24 months in any competing business in: your Designated Territory; a 25-mile radius of your Designated Territory; a 10-mile radius of the Designated Territory of any other Center; and you must comply with confidentiality, non disclosure and non-solicitation covenants. |
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Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–50)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, if the franchise is terminated or expires, the franchisee is subject to a non-competition covenant for 24 months. This means the franchisee cannot have any involvement, ownership, or interest in a competing business within their Designated Territory, a 25-mile radius of their Designated Territory, or a 10-mile radius of the Designated Territory of any other Mrcool Center.
In addition to the geographical restrictions, the franchisee must also comply with confidentiality, non-disclosure, and non-solicitation covenants. These covenants are designed to protect Mrcool's proprietary information and customer relationships.
This restriction is fairly standard in franchising to protect the brand and other franchisees in the system. Prospective franchisees should carefully consider the implications of this non-compete agreement, especially if they have prior experience or future aspirations in the same industry. It is important to understand the specific geographic boundaries and the definition of a "competing business" as defined in the Franchise Agreement.