What responsibilities does the Managing Owner of a Mrcool franchise have?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Managing Owner" if Franchisee is a partnership or Corporate Entity, the Managing Owner shall be the Owner responsible for the day-to-day oversight, management and operation of the Franchised Business.
The Managing Owner must possess, maintain and own not less than 25% of the equity and ownership interests in Franchisee.
At all times, the Managing Owner must manage the operations of the Franchised Business.
At all times, Franchisee's MRCOOL Center must be under the active, continuing and substantial personal involvement and hands-on supervision of Franchisee's Managing Owner.
The Managing Owner must at all times be actively involved in the operation of the Franchised Business unless Franchisee delegates management functions to an authorized Operating Manager who, among other things, satisfactorily completed Franchisor's Initial Training Program and has otherwise meet the criteria and conditions for qualification as an Operating Manager.
If, at any time, the Franchised Business is not being managed by a Managing Owner or Operating Manager who satisfactorily completed the Training Program, Franchisor is authorized, but is not required, to immediately appoint a manager to maintain the operations of the Franchised Business for and on behalf of Franchisee.
Franchisor is not liable for any debts, losses, costs or expenses incurred in the operations of the Franchised Business or to any creditor of Franchisee for any products, materials, supplies or services purchased by the Franchised Business while it is managed by Franchisor's appointed manager.
Franchisor has the right to charge fees and expenses, as determined by Franchisor, in Franchisor's Reasonable Business Judgment, for management services (the "Management Service Fees").
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the Managing Owner has several key responsibilities. If the franchisee is a partnership or corporation, the Managing Owner is the owner responsible for the day-to-day oversight, management, and operation of the franchised business. The Managing Owner must also possess, maintain, and own at least 25% of the equity and ownership interests in the franchise. At all times, the Managing Owner is required to manage the operations of the Mrcool franchised business.
The FDD also states that the Mrcool Center must be under the active, continuing, and substantial personal involvement and hands-on supervision of the Managing Owner. The Managing Owner must be actively involved in the operation of the franchised business unless management functions are delegated to an authorized Operating Manager who has satisfactorily completed Mrcool's Initial Training Program and meets other criteria for qualification.
If the Managing Owner or Operating Manager has not satisfactorily completed the Training Program, Mrcool is authorized to appoint a manager to maintain the operations of the franchised business on behalf of the franchisee. However, this does not relieve the franchisee of their obligations or waive Mrcool's right to terminate the franchise agreement. Mrcool can also charge fees and expenses for these management services. Therefore, it is crucial for a Mrcool franchisee to ensure that a qualified Managing Owner or Operating Manager is always in place to avoid intervention by Mrcool and associated costs.