How long does Mrcool have to notify a franchisee of approval or disapproval of a new supplier?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
If you want to purchase or lease a source restricted item from a supplier that has not been previously approved or designated by us in writing, you must send us a written request for approval and submit additional information, samples, and testing data that we may request. We may charge you a fee equal to the costs and expenses that we incur in reviewing and evaluating an alternate supplier, product, and/or service requested by you. We may request that you send us samples from the supplier for testing and documentation from the supplier for evaluation. We may also require, subject to our discretion, that we be allowed to inspect the supplier's facilities. We will notify you of our approval or disapproval within a reasonable time not exceeding 60 days after we receive your written request and all additional information and samples that we request. We may, in our sole discretion, withhold our approval. We do not make our procedures or criteria for approving suppliers available to our System franchisees, except that when evaluating the approval of a particular supplier, among other things, we consider: whether the supplier can demonstrate to our reasonable satisfaction the ability to meet our standards, specifications and production requirements, the suppliers quality control, whether or not we are the exclusive supplier of the particular item, whether or not our affiliate or affiliates are the exclusive supplier of the particular item, and whether or not the suppliers approval, in our sole determination, will allow us to advance the overall interests of the System and our company. If we have previously approved a supplier, and their standards fall below our designated standards, we will revoke our approval. We will notify you in writing of us revoking our approval.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 23–26)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, if a franchisee wants to use a new supplier for source-restricted items, they must submit a written request to Mrcool for approval, along with any additional information, samples, and testing data that Mrcool may require. Mrcool may also charge a fee to cover the costs of reviewing and evaluating the proposed alternate supplier, product, or service. Mrcool may also request samples for testing, documentation for evaluation, and may even require an inspection of the supplier's facilities.
Mrcool will then notify the franchisee of their decision, either approving or disapproving the new supplier. This notification will be provided within a reasonable time frame, but no later than 60 days after Mrcool receives the franchisee's written request and all the necessary supporting information and samples. However, Mrcool retains the sole discretion to withhold approval.
It is important to note that Mrcool does not disclose the specific procedures or criteria used for approving suppliers to its franchisees. However, when evaluating a supplier, Mrcool considers factors such as the supplier's ability to meet Mrcool's standards, specifications, and production requirements, the supplier's quality control measures, whether Mrcool or its affiliates are the exclusive supplier of the item, and whether approving the supplier will benefit the overall interests of the Mrcool system. If a previously approved supplier's standards decline, Mrcool will revoke the approval and notify the franchisee in writing.