What is the purpose of the Mrcool Site Selection Acknowledgment (Exhibit 3)?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
If, as of the Effective Date or other appropriate periods after the Effective Date, Franchisee has not selected a proposed Center Location that is approved by Franchisor but, Franchisee has identified an area in which Franchisee may look to secure a Center location for the Franchised Business, Franchisor, in Franchisor's discretion and Reasonable Business Judgment, may enter into the Site Selection Acknowledgment attached to this Agreement as Exhibit 3.
If executed by Franchisor, within the Exhibit 3 Site Selection Acknowledgment, Franchisor shall designate a geographic area (the "Site Selection Area") within which Franchisor, during the Site Selection Period, shall not, on behalf of any third party, approve any new Center Location.
Franchisee agrees that the Site Selection Acknowledgment does not constitute Franchisor's approval of a proposed Center Location, does not constitute Franchisor's designation of Franchisee's Designated Territory, does not afford Franchisee any territorial rights in or to the Site Selection Area, and does not extend and/or modify any obligation on the part of Franchisee to timely secure an approved Center Location in accordance with the terms of this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the Site Selection Acknowledgment (Exhibit 3) serves a specific purpose when a franchisee hasn't yet secured an approved location but has identified a potential area. Mrcool may, at its discretion, use this acknowledgment to designate a "Site Selection Area." During the Site Selection Period, Mrcool agrees not to approve any new Mrcool Center locations for other parties within that designated area.
However, the document explicitly states that the Site Selection Acknowledgment does NOT constitute approval of a specific location, designation of a territory, or the granting of any territorial rights to the franchisee. It also does not modify the franchisee's obligation to secure an approved location in a timely manner, according to the terms of the Franchise Agreement.
In essence, the Site Selection Acknowledgment provides a limited period of protection for a franchisee who is actively searching for a location, preventing Mrcool from approving competing locations in the immediate vicinity while the franchisee is evaluating potential sites. This agreement offers a temporary assurance but does not guarantee any exclusive rights or relieve the franchisee of their responsibility to find and secure an approved location.