What is the Mrcool franchisee's obligation regarding termination, surrender, or modification of the Lease?

According to Mrcool's 2025 Franchise Disclosure Document, a franchisee is explicitly prohibited from independently terminating, surrendering, or modifying the lease agreement for their business location. The franchisee, referred to as the Assignor in this context, must obtain prior written consent from Mrcool, who is referred to as the Assignee, before making any changes to the lease.

This requirement ensures that Mrcool maintains control over the locations of its franchises and protects its interests in the leased premises. By requiring consent, Mrcool can prevent franchisees from taking actions that could negatively impact the business or the brand's reputation. This also allows Mrcool to ensure the continuity of the business at that location, potentially by assigning the lease to another franchisee if necessary.

Furthermore, the franchisee is obligated to elect and exercise all options to extend or renew the lease throughout the term of the Franchise Agreement. This ensures the continued operation of the Mrcool franchise at its location, preventing disruptions that could arise from a lease expiring. This obligation aligns with Mrcool's interest in maintaining a stable network of franchise locations and protecting its brand presence in the market.