Will Mrcool franchisees receive any material benefits for using designated or approved suppliers?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
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Purchase Agreements and Cooperatives
We may, in our discretion, negotiate purchase agreements, including price terms, with designated suppliers for source restricted goods and services on behalf of the System. We may establish preferred vendor programs with suppliers on behalf of some or all of the Centers under the System. We may limit the number of approved vendors and/or suppliers that you may purchase from and we may designate one vendor as your sole supplier. Presently, there are no purchase or supply agreements in effect for source restricted products or services and there are no purchasing or distribution cooperatives that you must join. You will not receive any material benefits for using our designated or approved suppliers.
Our Right to Receive Compensation and Our Revenue from Source Restricted Purchases
We and our affiliates may receive rebates, payments and other material benefits from suppliers based on your purchases and we reserve the right to institute and expand rebate programs in the future. As of the Issuance Date of this Disclosure Document we have not received revenue from suppliers from franchisee purchases of source restricted products or services. We do not provide our franchisees with any material benefits based on a franchisee's purchase of particular products or services or use of particular suppliers.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 23–26)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, franchisees will not receive any material benefits for using designated or approved suppliers. Mrcool may negotiate purchase agreements with designated suppliers and establish preferred vendor programs. However, currently, there are no purchase or supply agreements in effect, and no purchasing or distribution cooperatives that franchisees must join.
While franchisees do not directly benefit from using approved suppliers, Mrcool and its affiliates may receive rebates, payments, and other benefits from these suppliers based on franchisee purchases. Mrcool reserves the right to implement and expand rebate programs in the future. As of the issuance date of the 2025 Disclosure Document, Mrcool had not received revenue from suppliers from franchisee purchases of source-restricted products or services.
During the fiscal year ended December 31, 2024, Mrcool did not provide franchisees with any material benefits based on their purchases from particular suppliers, nor did Mrcool earn any revenue from approved suppliers based on franchisee purchases. This means that while franchisees are required to use certain designated suppliers, they do not receive any direct financial or material advantages for doing so, while Mrcool may benefit from these arrangements.