What geographic area does Mrcool designate in the Site Selection Acknowledgment?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
If executed by Franchisor, within the Exhibit 3 Site Selection Acknowledgment, Franchisor shall designate a geographic area (the "Site Selection Area") within which Franchisor, during the Site Selection Period, shall not, on behalf of any third party, approve any new Center Location.
Franchisee agrees that the Site Selection Acknowledgment does not constitute Franchisor's approval of a proposed Center Location, does not constitute Franchisor's designation of Franchisee's Designated Territory, does not afford Franchisee any territorial rights in or to the Site Selection Area, and does not extend and/or modify any obligation on the part of Franchisee to timely secure an approved Center Location in accordance with the terms 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 Site Selection Acknowledgment designates a specific geographic area. If a franchisee has identified an area to secure a center location, Mrcool may, at its discretion, complete the Site Selection Acknowledgment. Within this acknowledgment, Mrcool designates a "Site Selection Area." During the Site Selection Period, Mrcool will not approve any new center locations for third parties within this designated area.
However, the document explicitly states that the Site Selection Acknowledgment does not constitute approval of a proposed center location, does not designate the franchisee's territory, does not grant territorial rights in the Site Selection Area, and does not modify the franchisee's obligation to secure an approved location promptly. This means that while Mrcool agrees not to approve other locations in the area for a limited time, it does not guarantee the franchisee's location will be approved or grant any exclusive rights to that area.
This acknowledgment serves as a temporary measure to allow the franchisee time to secure a location without immediate competition from other Mrcool franchisees. It is important for prospective franchisees to understand that this acknowledgment does not replace the need for thorough site selection and approval processes, nor does it provide any long-term territorial protection.