factual

Does Mrcool require franchisees to participate in system marketing, and if so, what are the requirements?

Mrcool Franchise · 2025 FDD

Answer from 2025 FDD Document

isor, in Franchisor's discretion and Reasonable Business Judgment, may require that the deficiency be added as additional local marketing expenditures, over and above the required amount, that Franchisee must spend within the immediately succeeding quarterly period or periods, as directed by Franchisor, or, at Franchisor's discretion, be contributed to a Brand Development Fund. All marketing of the Franchised Business by Franchisee must be pre-approved, in writing by Franchisor.

Franchisor reserves the right to reject any and all marketing efforts requested by Franchisee and to prescribe all marketing, marketing media, marketing channels, promotions, copy, creative, and messaging that Franchisee may or may not use in Franchisee's marketing of the Franchised Business. Franchisee further agrees that:

  • (1) In addition to calendar year quarterly reports, Franchisee shall provide Franchisor with monthly reports documenting Franchisee's marketing initiatives, expenses incurred, placements secured, and other metrics and financial information as designated by Franchisor;
  • (2) Prior to opening the Franchised Business, Franchisee shall submit to Franchisor, Franchisee's grand opening marketing plan for review and approval by Franchisor. Franchisee shall use only those portions of its grand opening marketing that are pre-approved by Franchisor and consistent with Franchisor's standards and specifications. Not less than 30 days prior to the opening of the Franchised Business, Franchisee shall spend not less than $2,000 to market and promote the grand opening of the Franchised Business in accordance with Franchisor's standards and specifications;

  • (3) At all times, Franchisee's marketing efforts and the distribution of each marketing channel and media engaged by Franchisee must be directly targeted to Franchisee's Designated Territory. Franchisee shall not direct or target Franchisee's marketing efforts with the purpose or effect of soliciting or attracting customers outside of Franchisee's Designated Territory. To the extent that Franchisee's marketing efforts involve a marketing medium or distribution channel that is targeted to Franchisee's Designated Territory but reaches outside of and beyond Franchisee's Designated Territory Franchisor, in Franchisor's Reasonable Business Judgment, shall have the right to direct and require Franchisee to discontinue such marketing; and
  • (4) At all times, Franchisee hereby grants to Franchisor the right, without compensation to Franchisee, to use Franchisee's name, address, photograph, and biographical information in any publication related to the System, including in relation to the sale of MRCOOL Center franchises.

Franchisor reserves the right to collect Franchisee's local marketing requirement directly and utilize those funds to market directly in Franchisee's Designated Territory, in Franchisor's Reasonable Business Judgment.

9.C. REQUIRED FRANCHISOR APPROVAL OF ALL MARKETING

All marketing and promotion of the Franchised Business and all marketing media, campaigns, marketing channels, and efforts used by Franchisee must conform to Franchisor's standards and specifications as set forth in the Operations Manual or, as may be otherwise directed by Franchisor in writing from time to time.

If Franchisee wishes to propose to Franchisor for approval or disapproval marketing or promotional efforts, campaigns, and/or media that are not presently and expressly approved and authorized by Franchisor, Franchisee shall submit a written request, including samples of all proposed marketing materials and a description of the marketing channels and distribution to Franchisor for Franchisor's approval or disapproval, that shall be at the sole discretion of Franchisor, in Franchisor's Reasonable Business Judgment. Provided that Franchisee has satisfied the written notice requirements set forth in this Article 9.C. and provided that Franchisee otherwise timely responds in writing to any and all requests by Franchisor for additional information, if Franchisor does not notify Franchisee that Franchisor disapproves the materials within 15 days from the date Franchisor receives the materials, then Franchisee may commence using the materials.

Source: Item 23 — RECEIPTS (FDD pages 55–263)

What This Means (2025 FDD)

According to Mrcool's 2025 Franchise Disclosure Document, franchisees are required to participate in system marketing. Mrcool reserves the right to reject any marketing efforts proposed by the franchisee and prescribe all marketing media, channels, promotions and messaging. Franchisees must submit monthly reports documenting their marketing initiatives, expenses, placements, and other financial information.

Prior to opening, franchisees must submit a grand opening marketing plan to Mrcool for approval and spend at least $2,000 on marketing and promoting the grand opening, following Mrcool's standards. All marketing efforts must target the franchisee's designated territory, and Mrcool can require franchisees to discontinue marketing that extends beyond this territory. Mrcool also has the right to use a franchisee's name, address, photograph, and biographical information in any publication related to the Mrcool system without compensating the franchisee.

Mrcool also reserves the right to collect a franchisee's local marketing funds and use them to market directly in the franchisee's designated territory. Franchisees are also required to participate in utilizing a Contact Center designated by Mrcool at the franchisee's sole cost and expense. Participation and payment of Contact Center Fees are mandatory.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.