What is the minimum royalty fee for an Mrcool franchise during the term of any renewal Franchise Agreement?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right to modify the Minimum Royalty in any renewal Franchise Agreement in our Reasonable Business Judgment. During the term of any renewal Franchise Agreement, the Minimum Royalty will not be less than the Minimum Royalty set forth in the above table for Year "4 and thereafter."
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the minimum royalty fee during any renewal Franchise Agreement will not be less than the amount set forth for Year 4 and thereafter in the Minimum Royalty Schedule.
The Minimum Royalty Schedule outlines the minimum monthly royalty fees a franchisee must pay. For the first year, the minimum royalty is $1,000 per month. This increases to $1,500 per month in the second year and $1,800 per month in the third year.
In the fourth year and beyond, the minimum royalty is $2,160 per month. Therefore, if a franchisee renews their agreement, the minimum royalty they will pay is $2,160 per month. Mrcool also retains the right to modify the Minimum Royalty in any renewal Franchise Agreement in its Reasonable Business Judgment.