Is Mrcool required to include information about franchise availability in advertising developed with Brand Development Funds?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
We may use the Brand Development Fund to compensate ourselves for administrative fees associated with managing the Brand Development Fund and for our internal employee salaries, expenses and overhead associated with or reasonably allocated to managing the activities of the Brand Development Fund and performing services on behalf of the Brand Development Fund including, but not limited to, directing, developing and managing media of the Brand Development Fund. We will not use the Brand Development Fund to directly market the sale of Centers, but may do so indirectly by requiring and including information as to the availability of Center franchises for sale and contact information for franchise inquiries on and within advertising, marketing and brand development materials, including the System website, developed with the Brand Development Funds.
As of December 31, 2024, we have not collected the Brand Development Fund, however we intend to do so in the future.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–35)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, Mrcool is not obligated to directly market the sale of Centers using the Brand Development Fund. However, Mrcool may indirectly market the sale of franchises. Specifically, Mrcool can require and include information regarding the availability of Mrcool Center franchises for sale. This information, along with contact details for franchise inquiries, may be included in advertising, marketing, and brand development materials. This includes the System website, all of which are developed using Brand Development Funds.
As of December 31, 2024, Mrcool had not yet collected funds for the Brand Development Fund, but intends to do so in the future. Franchisees are required to contribute a monthly sum, not exceeding 2% of their monthly Gross Sales, to the Brand Development Fund, as detailed in Item 6 of the FDD.
The Brand Development Fund can be used for various purposes such as market studies, research, service and product development, advertising, public relations, and administrative costs. Mrcool emphasizes that the Brand Development Fund will not be used to directly promote an individual franchisee's Center or its marketing area. All franchisees will be subject to the same Brand Development Fund requirements.