If Schedule 1 of the Mrcool agreement is left incomplete or is not signed by the franchisor, what must the franchisee do?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
ed Territory, if any, shall be identified in Schedule 1 of this Agreement. To be effective, Schedule 1 must be completed and signed by Franchisor. Franchisee's execution of Schedule 1 with a specific location for Franchisee's Center Location shall constitute Franchisee's obligation to develop and operate the Franchised Business at the designated Franchisee Center Location;
- (3) If, as of the Effective Date, Franchisee has not selected a proposed Center Location, and/or has not obtained Franchisor's approval of the proposed Center Location, and/or Schedule 1 to this Agreement is left incomplete or is not signed by Franchisor, Franchisee must locate, identify and secure a Center Location for the Franchised Business in accordance with the terms of this Agreement, including the requirement that Franchisee must obtain Franchisor's approval of
Franchisee's Center Location. If, after the Effective Date, Franchisee proposes and Franchisor approves of Franchisee's proposed Center Location, such approval must be in writing and must be evidenced by Franchisor's execution of Schedule 1 with a specific Center Location designated and identified in Schedule 1.
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, if Schedule 1 to the agreement is incomplete or unsigned by Mrcool as of the effective date, the franchisee is responsible for locating, identifying, and securing a center location for the franchised business. This must be done in accordance with the terms of the agreement, which includes obtaining Mrcool's approval of the proposed location.
If, after the effective date, the franchisee proposes a center location that Mrcool approves, such approval must be in writing and evidenced by Mrcool's execution of Schedule 1 with a specific center location designated and identified in Schedule 1. At the time of executing a completed Schedule 1 and approving the franchisee's proposed location, Mrcool will designate and determine the franchisee's designated territory, using their reasonable business judgment and discretion.
Furthermore, the FDD states that if Schedule 1 is not completed and/or signed by Mrcool, there will be no designated territory for the franchisee. This means the franchisee may not have exclusive rights to a specific geographic area, which could lead to increased competition from other Mrcool franchisees.