What is the initial franchise fee for a Mrcool franchise?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 1: Initial Franchise Fee – The Initial Franchise Fee for a single franchise under a Franchise Agreement is $50,000. All initial franchise fees are non-refundable. We do not finance any portion of your initial franchise fees.
Note 1: Development Area Fee and Franchise Fees – When you sign a Multi-Unit Development Agreement you must also sign a Franchise Agreement for the first Center that you will be required to develop under your Multi-Unit Development Agreement. At the time of signing your Multi-Unit Development Agreement, in addition to paying us the Franchise Fee for your first Center, you will pay to us a Development Area Fee. The amount of the Development Area Fee varies depending on the number of additional Centers, over and above the first Center authorized by the Franchise Agreement that you will sign with the Multi-Unit Development Agreement, that you will be authorized to develop within the Development Area.
The minimum number of Centers that you may be authorized to develop under a Multi-Unit Development Agreement is two and the maximum number is five. The Development Area Fee is $45,000 for the second Center and $40,000 for the third Center and each Center thereafter, over and above the first Center authorized by the Franchise Agreement that you will sign with your Multi-Unit Development Agreement. You will not be required to pay to us an Initial Franchise Fee at the time of signing the Franchise Agreement for each additional Center, over and above the initial franchise fee of $50,000 that you will pay at the time of signing the Franchise Agreement for the first Center in your Development Area and the Development Area Fee that you will pay to us at the time of signing the Multi-Unit Development Agreement.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–23)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the initial franchise fee for a single franchise is $50,000. This fee is payable as a lump sum when the Franchise Agreement is signed. Mrcool does not offer financing for any portion of the initial franchise fee, and the fee is non-refundable.
For franchisees considering a Multi-Unit Development Agreement, the initial franchise fee structure is slightly different. While the initial franchise fee for the first center remains $50,000, franchisees must also pay a Development Area Fee when signing the Multi-Unit Development Agreement. This fee varies depending on the number of additional centers the franchisee is authorized to develop, ranging from two to five centers. The Development Area Fee is $45,000 for the second center and $40,000 for the third center and each center thereafter.
Importantly, franchisees entering into a Multi-Unit Development Agreement will not be required to pay an additional initial franchise fee for each subsequent center beyond the first. This means that after paying the initial $50,000 franchise fee and the applicable Development Area Fee, no further initial franchise fees are required for the additional centers developed under the agreement. This structure incentivizes multi-unit development by reducing the upfront costs associated with expanding the Mrcool franchise network.