Is an Initial Franchise Fee required at the time of signing the Franchise Agreement for each additional Mrcool Center beyond the first under a Multi-Unit Development Agreement?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
evelop 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 t
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–23)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, when signing a Multi-Unit Development Agreement, franchisees are not required to pay an Initial Franchise Fee for each additional Mrcool Center beyond the first. Instead, franchisees pay a Development Area Fee. The minimum number of Centers that may be authorized to develop under a Multi-Unit Development Agreement is two and the maximum number is five.
The Development Area Fee varies depending on the number of additional Centers authorized. For the second Mrcool Center, the Development Area Fee is $45,000, and for the third Center and each Center thereafter, the fee is $40,000. This fee is in addition to the Initial Franchise Fee of $50,000, which is paid when signing the Franchise Agreement for the first Mrcool Center in the Development Area.
In summary, while an initial franchise fee of $50,000 is required for the first Mrcool Center, subsequent centers developed under a Multi-Unit Development Agreement do not require an additional initial franchise fee. Instead, a Development Area Fee is applicable, ranging from $45,000 to $40,000 depending on the number of centers being developed.