Does Mrcool review the lease terms for my Center Location?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
Lease We do not review the terms of the lease for your Center Location but require that your landlord acknowledge our rights as set forth in the lease agreement rider attached as Exhibit 4 to the Franchise Agreement (the "Lease Agreement Rider") and that you collaterally assign the lease to us as set forth in the collateral assignment of lease attached as Exhibit 5 to the Franchise Agreement.
We possess the right to disapprove of a proposed lease if the landlord refuses to sign the Lease Agreement Rider in substantially the form set forth in Exhibit 4 to the Franchise Agreement.
The Lease Agreement Rider grants certain rights to us, including our right to be notified in the event of a lease default and, potentially, for us to enter the premises of your Center.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 23–26)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, Mrcool does not review the lease terms for your Center location. However, Mrcool requires that your landlord acknowledge Mrcool's rights as outlined in the Lease Agreement Rider, which is attached as Exhibit 4 to the Franchise Agreement. Additionally, you must collaterally assign the lease to Mrcool, as detailed in the collateral assignment of lease attached as Exhibit 5 to the Franchise Agreement.
While Mrcool does not review the lease terms, they retain the right to disapprove a proposed lease if the landlord refuses to sign the Lease Agreement Rider in substantially the form set forth in Exhibit 4 to the Franchise Agreement. This rider grants Mrcool certain rights, including the right to be notified in the event of a lease default and the potential right for Mrcool to enter the premises of your Center.
This means that while Mrcool doesn't scrutinize the financial or legal terms of your lease, they do ensure their own interests are protected through the Lease Agreement Rider and the collateral assignment. As a prospective franchisee, you should carefully review Exhibits 4 and 5 of the Franchise Agreement to understand the specific rights Mrcool has regarding your lease and premises. You should also ensure that your landlord is willing to sign the Lease Agreement Rider, as their refusal could lead to Mrcool disapproving your lease.