Can the Mrcool Franchisor change the designated Accounting Period?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
"Accounting Period" refers to and means the period of time selected and determined by Franchisor for the required measurement and reporting of financial information and payment of financial obligations by Franchisee. The applicable measurement period will be determined by Franchisor from time to time with respect to Franchisee's obligations to report financial information and data to Franchisor and Franchisee's payment of all fees, including, and other obligations under this Agreement. The respective "Accounting Period" shall be those Franchisor designated times, whether, weekly, monthly, or otherwise, as designated by Franchisor, with all such Accounting Periods automatically commencing on the earlier of the (a) Scheduled Business Commencement Date, or (b) the Actual Business Commencement Date of the Franchised Business and, continuing, throughout the Term of this Agreement. Unless otherwise designated by Franchisor at any time, unless otherwise specified in this Agreement, the Accounting Period shall be a quarterly period for each and every quarter throughout the Term of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the franchisor has the authority to determine and modify the accounting period for franchisees. The "Accounting Period" is defined as the timeframe selected by Mrcool for franchisees to measure, report financial information, and fulfill financial obligations.
Mrcool can designate the accounting period as weekly, monthly, or another interval. This period begins on the earlier of the Scheduled Business Commencement Date or the Actual Business Commencement Date and continues throughout the term of the agreement. Unless otherwise specified by Mrcool, the accounting period is quarterly.
This means that Mrcool franchisees must adhere to the accounting periods set by the franchisor for reporting financial data and making payments. The franchisor retains the right to change these periods, which could impact the frequency with which franchisees must compile and submit financial information. Prospective franchisees should be aware that Mrcool has the flexibility to alter the accounting period as it deems necessary.