When is the renewal 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. |
| Non-compliance | Actual fees, costs, and expenses | On demand | Fees, costs and expenses incurred by us as a result of your breach or noncompliance with the terms of your Franchise Agreement. |
| Supplier Review | Actual fees, costs, and expenses | Within 14 days of invoice | You must pay us the costs incurred by us to review and evaluate a potential supplier, product, or service that you submit to us for approval. |
| Management Service | Actual costs incurred by us | As invoiced | Payable if we elect to manage the Franchised Business due to a failure by you to have the Franchised Business managed by an authorized Managing Owner or Manager. |
| Transfer | $20,000 | On demand | Payable if we approve your transfer request, but prior to execution of final transfer agreements and authorization. |
| Renewal | $10,000 | On signing renewal Franchise Agreement | Payable if we approve your renewal request and upon signing our then current Franchise A |
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the renewal fee is payable upon signing the renewal Franchise Agreement, assuming Mrcool approves the renewal request. The renewal fee itself is $10,000.
This means that if a franchisee wants to renew their franchise agreement with Mrcool, they will need to pay $10,000 at the time of signing the new agreement. This fee is separate from any other costs associated with the renewal process, such as legal fees or any required upgrades to the franchise location.
It is important to note that the renewal is contingent upon Mrcool's approval. This implies that Mrcool has the right to deny a renewal request, and in such a case, the franchisee would not be required to pay the renewal fee. Prospective franchisees should inquire about the criteria Mrcool uses to evaluate renewal requests to understand the conditions under which a renewal might be denied.