What is the relationship between the Mrcool Multi-Unit Development Agreement and the waiver of the Development Center Initial Franchise Fee?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
rth in the first paragraph of this Agreement.
| Franchisor: MRCOOL Franchising, LLC | Franchisee: | |
|---|---|---|
| Signature | Signature | |
| Name and Title (please print) | Name (please print) | |
| Dated | Dated | |
| Signature | ||
| Name (please print) | ||
| Dated |
Multi-Unit Development Agreement – Schedule A DEVELOPMENT INFORMATION SHEET
| A. List of State Administrators | G. List of Franchisees | |---|---| | B. List of Agents for Service of Process | H. List of Franchisees Who Have Left the System | | C. Operations Manual Table of Contents | I. State Specific Addenda | | D. Financial Statements | J. State Effective Dates | | E. Franchise Agreement | K. Receipts | | F. Multi-Unit Development Agreement | | [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
FIRST DEVELOPMENT CENTER: The Development Center Initial Franchise Fee for the First Development
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the Multi-Unit Development Agreement affects the Development Center Initial Franchise Fee for additional centers beyond the first one. The initial franchise fee for the first development center is $50,000, payable upon execution of the Franchise Agreement. This fee is separate from the Development Area Fee.
For each additional Mrcool Development Center beyond the first, the Development Center Initial Franchise Fee is waived, effectively setting it to $0. However, this waiver is conditional. To qualify for the waiver, the franchisee must not be in default of the terms of the Mrcool Multi-Unit Development Agreement. This includes adhering to the Development Schedule outlined in the agreement.
Furthermore, neither the franchisee nor their affiliates can be in default of any Franchise Agreement or other agreement with Mrcool. If these conditions are met, the franchisee does not have to pay the Development Center Initial Franchise Fee for each additional Development Center, which would otherwise be due at the time of signing the Franchise Agreement for each center.