When is the payment non-compliance fee due to Mrcool?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Payment Non-Compliance | $150 per occurrence | 14 days of invoice | Payable for failure to timely pay, when due, a fee or payment due to us under the Franchise Agreement, plus interest, costs and legal fees. |
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the payment non-compliance fee is due 14 days from the invoice date. This fee is incurred when a franchisee fails to make payments on time for any fees or payments owed to Mrcool under the Franchise Agreement. In addition to the $150 non-compliance fee, the franchisee is also responsible for covering interest, costs, and legal fees associated with the late payment.
This policy ensures that Mrcool franchisees adhere to the payment terms outlined in the franchise agreement. The fee serves as a deterrent against late payments and helps Mrcool cover any additional expenses incurred as a result of the franchisee's failure to pay on time.
Prospective franchisees should be aware of this policy and ensure they have sufficient financial planning to meet all payment deadlines. Consistently paying on time will help avoid these additional fees and maintain a positive financial standing with Mrcool. It is also important to understand what constitutes a 'fee or payment due' under the Franchise Agreement to avoid unintentional non-compliance.