According to Mrcool's 2025 Franchise Disclosure Document, the company maintains a $500,000 bank line of credit. The interest rate on this line of credit is variable and based on the Term SOFR Rate. As of December 31, 2024, the interest rate was 8.375%. The line of credit is secured by all of Mrcool's business assets and expires on June 19, 2025.

For a prospective Mrcool franchisee, this information provides insight into the franchisor's financial arrangements. Knowing the interest rate and terms of Mrcool's credit line can help franchisees assess the financial stability and risk profile of the company. A higher interest rate might indicate a higher risk from the lender's perspective, while the expiration date indicates when Mrcool may need to renegotiate its credit terms.

It's important to note that the interest rate is variable, meaning it can fluctuate based on market conditions and the Term SOFR Rate. This could impact Mrcool's borrowing costs and potentially affect its financial performance. Additionally, the fact that the line of credit is secured by all business assets means that the lender has a claim on those assets in the event of default.

Franchisees should consider these factors when evaluating the overall financial health of Mrcool and its ability to support its franchisees. Understanding the franchisor's debt obligations and financing arrangements is a key part of due diligence before investing in a franchise.