What is the minimum royalty fee per month for an Mrcool franchise during its first year of operation?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
| Year | Minimum Royalty Per Month |
|---|---|
| 1 | $1,000 per month |
| 2 | $1,500 per month |
| 3 | $1,800 per month |
| 4 and thereafter | $2,160 per month |
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, a franchisee must pay a minimum royalty fee. During the first year of operation, the minimum royalty fee is $1,000 per month.
This minimum royalty payment is a recurring monthly expense that Mrcool franchisees must factor into their operating costs. Even if the 1% royalty rate of gross sales is less than $1,000, the franchisee is still obligated to pay the minimum amount. This ensures that Mrcool receives a baseline royalty income from each franchise location.
In subsequent years, the minimum royalty increases. It rises to $1,500 per month in the second year, $1,800 per month in the third year, and $2,160 per month from the fourth year onward. Franchisees should anticipate these increases and plan their finances accordingly. Mrcool also retains the right to increase the royalty rate in the future, but not by more than 0.5% in any calendar year, and the rate cannot exceed 2.5% of monthly gross sales.