What happens if the landlord refuses to sign the Mrcool Lease Agreement Rider?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
Lease We do not review the terms of the lease for your Center Location but require that your landlord acknowledge our rights as set forth in the lease agreement rider attached as Exhibit 4 to the Franchise Agreement (the "Lease Agreement Rider") and that you collaterally assign the lease to us as set forth in the collateral assignment of lease attached as Exhibit 5 to the Franchise Agreement.
We possess the right to disapprove of a proposed lease if the landlord refuses to sign the Lease Agreement Rider in substantially the form set forth in Exhibit 4 to the Franchise Agreement.
The Lease Agreement Rider grants certain rights to us, including our right to be notified in the event of a lease default and, potentially, for us to enter the premises of your Center.
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, Mrcool must approve the lease for your Center location. As part of this process, Mrcool requires that your landlord acknowledge Mrcool's rights by signing the Lease Agreement Rider, which is attached as Exhibit 4 to the Franchise Agreement. You must also collaterally assign the lease to Mrcool, as detailed in Exhibit 5 of the Franchise Agreement.
If the landlord refuses to sign the Lease Agreement Rider in substantially the form presented in Exhibit 4, Mrcool has the right to disapprove the proposed lease. This means that if you cannot secure the landlord's signature on the Lease Agreement Rider, Mrcool can reject the lease, potentially preventing you from opening your franchise at that location.
The Lease Agreement Rider is important because it grants certain rights to Mrcool. These rights include the right to be notified if you default on your lease and the potential right for Mrcool to enter the premises of your Center. This ensures that Mrcool has some control over the physical location of the franchise and can protect its interests should any issues arise with the lease agreement.