What reconciliation is required for the annual financial statements submitted by Mrcool franchisees?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
applicable measurement period will be determined by Franchisor from time to time with respect to Franchisee's obligations to report financial information and data to Franchisor and Franchisee's payment of all fees, including, and other obligations under this Agreement. The respective "Accounting Period" shall be those Franchisor designated times, whether, weekly, monthly, or otherwise, as designated by Franchisor, with all such Accounting Periods automatically commencing on the earlier of the (a) Scheduled Business Commencement Date, or (b) the Actual Business Commencement Date of the Franchised Business and, continuing, throughout the Term of this Agreement. Unless otherwise designated by Franchisor at any time, unless otherwise specified in this Agreement, the Accounting Period shall be a quarterly period for each and every quarter throughout the Term of this Agreement.
"Actual Business Commencement Date" refers to and means the date of the grand opening of the Franchised Business and/or the date upon which the Franchised Business is open to the public.
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
Based on the 2025 Mrcool Franchise Disclosure Document, the term "Accounting Period" is defined as the period determined by Mrcool for measuring and reporting financial information, as well as for the payment of financial obligations by the franchisee. This period is determined by Mrcool and can be weekly, monthly, or otherwise.
The Accounting Period commences on the earlier of the Scheduled Business Commencement Date or the Actual Business Commencement Date and continues throughout the term of the agreement. Unless otherwise specified by Mrcool, the accounting period is a quarterly period for each quarter during the term of the agreement.
Prospective Mrcool franchisees should clarify with Mrcool the specific requirements for financial statement reconciliation, including the frequency, format, and any required documentation, to ensure compliance with the franchise agreement.