factual

What must a Mrcool franchisee do if they learn of any unauthorized use of the Manuals?

Mrcool Franchise · 2025 FDD

Answer from 2025 FDD Document

t applied to the United States Copyright Office to register these copyrights.

You must keep as confidential our Manuals and any supplements to the Manuals. Our Manuals may take the form of written materials and/or digitally distributed and stored materials and made available to you for use in connection with the Franchised Business. The Manuals contain information about our System, Approved Services and Products, System Supplies, proprietary products, marketing systems, training, and confidential methods of operation. You must use all reasonable and prudent means to maintain the Manuals and the information maintained in the Manuals as confidential and prevent any unauthorized copies, recordings, reproduction, or distribution of the Manuals or the information contained in the Manuals. You must also restrict access to the Manuals to management level employees who sign a confidentiality agreement with you and are required by you to maintain the confidentiality of the Manuals and refrain from distributing or disclosing the Manuals and the information contained in the Manuals. You must provide us with immediate notice if you learn of any unauthorized use of the Manuals or of the information contained

in the Manuals, or any infringement or challenge to the proprietary or confidentiality of the information contained in the Manuals. We will take any and all action(s) or, refrain from taking action, that we determine, in our discretion, to be appropriate. We may control any action or legal proceeding we choose to bring. We need not participate in your defense or indemnify you for damages or expenses in a proceeding involving a copyright or patent. If any third party establishes to our satisfaction, in our discretion, that it possesses rights superior to ours, then you must modify or discontinue your use of these materials in accordance with our written instructions.

Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 41–42)

What This Means (2025 FDD)

According to Mrcool's 2025 Franchise Disclosure Document, franchisees have specific obligations regarding the confidentiality and security of the Mrcool Manuals. These manuals contain critical information about the Mrcool system, including approved services and products, system supplies, proprietary products, marketing systems, training, and confidential methods of operation. Franchisees must actively protect this information.

Specifically, if a Mrcool franchisee becomes aware of any unauthorized use of the Manuals or the information within them, or any infringement or challenge to the proprietary or confidential nature of this information, they are required to provide Mrcool with immediate notice. This includes unauthorized copies, recordings, reproduction, or distribution of the manuals. The franchisee must also restrict access to the manuals to management-level employees who have signed confidentiality agreements, reinforcing the importance of maintaining secrecy within their own staff.

Once Mrcool receives notice of unauthorized use, the company has the sole discretion to decide what action to take, or whether to take any action at all. Mrcool also retains control over any legal proceedings related to the misuse of the Manuals and is not obligated to participate in the franchisee's defense or indemnify them for damages or expenses in cases involving copyright or patent issues. If a third party successfully claims superior rights to the materials, the franchisee must modify or discontinue their use of the materials as directed by Mrcool.

This arrangement places the responsibility for initial detection and notification on the franchisee, while granting Mrcool control over the response and any legal actions. A prospective franchisee should understand that while they are responsible for maintaining confidentiality, Mrcool ultimately decides how to address any breaches or challenges to their proprietary information.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.