If Mrcool establishes a local advertising cooperative, is a franchisee required to participate?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 9: Local and Regional Advertising Cooperatives – If two or more Centers are operating within a geographic area, region, or market designated by us (a "Designated Market"), we reserve the right to establish and require your participation in a local or regional advertising cooperative within the Designated Market. If a local or regional advertising cooperative is established within a Designated Market that includes your Center(s), you will be required to participate in the cooperative and make on-going payments to the cooperative in such amounts and subject to such caps as established by the cooperative members. We anticipate that each Center franchisee will have one vote for each Center located within the cooperative market and that cooperative decisions shall be made based on approval of a simple majority vote with a quorum of not less than 25% of the designated cooperative members. Contributions to a local or regional cooperative that we designate will count toward satisfaction of your minimum local marketing requirements, if required. Contributions to a local or regional cooperative that we designate shall count toward the satisfaction of your local marketing obligations and shall not exceed local marketing requirements.
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, if two or more Mrcool centers operate within a Designated Market, Mrcool reserves the right to establish a local or regional advertising cooperative. If such a cooperative is established, franchisees are required to participate and make ongoing payments. The amounts and caps for these payments are determined by the cooperative members.
Each Mrcool center franchisee within the cooperative market has one vote per center. Cooperative decisions are made by a simple majority vote, provided that at least 25% of the designated cooperative members are present to form a quorum.
Contributions to a local or regional cooperative designated by Mrcool count toward satisfying the franchisee's minimum local marketing requirements, if such requirements exist. Furthermore, these contributions do not exceed the local marketing requirements, ensuring that franchisees are not obligated to spend more on cooperative advertising than their overall local marketing obligations.