When is the NSF check fee or failed electronic fund transfer fee payable to Mrcool?
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, the NSF check fee or failed electronic fund transfer fee is payable 'on demand.' This fee is triggered 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 amount of the NSF check fee or failed electronic fund transfer fee is 5% of the amount due or $50, whichever is greater, or the maximum fee allowed by law. This means that if a franchisee's payment of $1,000 is rejected due to insufficient funds, the NSF fee would be $50 (since 5% of $1,000 is $50). However, if the payment was $200, the NSF fee would be $50, as it is greater than 5% of $200, which is $10.
It is important for prospective Mrcool franchisees to maintain sufficient funds in their designated bank accounts to avoid incurring these fees. The 'on demand' payment term means Mrcool can request immediate payment of the fee, potentially adding financial strain if not addressed promptly. Franchisees should also be aware of any applicable state laws that may limit the maximum NSF check fee.