Where are the 'Management Service Fees' for a Mrcool franchise defined in the agreement?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Management Service Fees" shall have the meaning defined and set forth in Articles 7.J. and 14.D. of this Agreement.
Franchisor has the right to charge fees and expenses, as determined by Franchisor, in Franchisor's Reasonable Business Judgment, for management services (the "Management Service Fees").
The Management Service Fee shall be immediately payable upon invoice by us.
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the 'Management Service Fees' are defined in Articles 7.J. and 14.D. of the franchise agreement. These fees are charged by Mrcool if the franchisor appoints a manager to oversee the operations of the franchised business because the franchisee's Managing Owner or Operating Manager has not satisfactorily completed the required training program.
Specifically, Mrcool has the right, but not the obligation, to appoint a manager to maintain operations if the Franchised Business is not being managed by a Managing Owner or Operating Manager who has completed the Training Program. This appointment does not relieve the franchisee of their obligations or waive Mrcool's right to terminate the franchise agreement.
The fees and expenses for these management services are determined by Mrcool in its Reasonable Business Judgment. The Management Service Fees are payable immediately upon invoicing by Mrcool. The decision to provide management services, the extent of those services, and their discontinuation are all determined exclusively by Mrcool in its Reasonable Business Judgment. Franchisees should note that Mrcool is not liable for any debts, losses, costs, or expenses incurred during the period when the business is managed by Mrcool's appointed manager.