What is the NSF check fee or failed electronic fund transfer fee for a Mrcool franchise?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
| and/or to enforce the terms of the Franchise Agreement or a termination of the Franchise Agreement. Includes costs and expenses of re-inspections required by quality assurance audit. | |||
|---|---|---|---|
| NSF Check Fee of Failed Electronic Fund Transfer | 5% of amount or $50, whichever is greater, or maximum fee allowed by law | On demand | Payable if your bank account possesses insufficient funds and/or fails to process a payment or transfer related to a fee due from you to us. |
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, if a franchisee's bank account has insufficient funds or fails to process a payment or transfer related to a fee owed to Mrcool, the franchisee will be charged a NSF check fee or failed electronic fund transfer fee. This fee is equal to 5% of the amount due or $50, whichever is greater. However, the fee will not exceed the maximum fee allowed by law.
This fee is payable on demand, meaning Mrcool can request immediate payment. This policy is fairly standard in franchising, as it protects the franchisor from losses due to failed payments and encourages franchisees to maintain sufficient funds in their accounts.
Prospective Mrcool franchisees should be aware of this fee and ensure they have adequate funds available to cover all payments to Mrcool. It is also important to understand the circumstances under which this fee may be charged to avoid any unexpected costs.