What is the 'Franchisee's Center Facility' and what are the requirements for its location for a Mrcool franchise?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Franchisee's Center Facility" refers to and means the Center Facility from which Franchisee develops, operates and manages the Franchised Business.
Franchisee's Center Facility must be located at a Center Location that has been approved by Franchisor.
- "Franchisee's Center Location" shall have the meaning defined and set forth in Article 2.A. of this Agreement.
Franchisee's Center Location must be designated in accordance with Schedule 1 of this Agreement and must be approved by Franchisor, in Franchisor's Reasonable Business Judgment.
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the 'Franchisee's Center Facility' is defined as the physical location from which a franchisee develops, operates, and manages their Mrcool franchised business. This facility must be situated at a 'Center Location' that has received prior approval from Mrcool. The 'Franchisee's Center Location' is further defined in Article 2.A of the agreement and must be designated in Schedule 1 of the agreement, also requiring Mrcool's approval based on their 'Reasonable Business Judgment'.
Securing an approved location is a critical step for a prospective Mrcool franchisee. The FDD emphasizes that the location must be approved by Mrcool, giving Mrcool the authority to determine if a location is suitable. This approval process is tied to Schedule 1 of the franchise agreement, which must be completed and signed by Mrcool to formally designate the 'Franchisee's Center Location'. If Schedule 1 is incomplete or unsigned, the franchisee is responsible for finding and securing a location that meets Mrcool's approval.
The franchisor's 'Reasonable Business Judgment' plays a significant role in location approval, meaning Mrcool will make decisions they believe will benefit the overall Mrcool system. This gives Mrcool considerable discretion in approving or rejecting a proposed location. A franchisee might need to invest time and resources in identifying potential locations and presenting them to Mrcool for approval.
If a franchisee wishes to relocate their Mrcool business, they must obtain prior written consent from Mrcool, which Mrcool may refuse based on their 'Reasonable Business Judgment'. If Mrcool consents to the relocation, they may impose requirements such as ensuring the new location and facility meet Mrcool's current standards, are within the designated territory, and are not in close proximity to another Mrcool center. The franchisee is responsible for constructing and establishing the new facility according to Mrcool's standards and specifications.