When is the Mrcool Royalty fee due each month?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty (Notes 2 and 3) | Up to 2.5% of monthly Gross Sales, currently 1% of monthly Gross Sales Subject to minimum royalty (see Note 2) | Monthly on the 10th day of each month for the preceding month | Will be debited automatically from your bank account by ACH or other means designated by us. |
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the Royalty Fee is due monthly on the 10th day of each month for the preceding month. The royalty fee is up to 2.5% of monthly Gross Sales, but is currently 1% of monthly Gross Sales.
In addition to the percentage of gross sales, Mrcool also has a minimum royalty that must be paid each month. The minimum royalty payment varies depending on the year of operation. In the first year, the minimum royalty is $1,000 per month. In the second year, the minimum royalty is $1,500 per month. In the third year, the minimum royalty is $1,800 per month. In the fourth year and thereafter, the minimum royalty is $2,160 per month.
The Royalty Fee will be automatically debited from the franchisee's bank account by ACH or other means designated by Mrcool. This means that franchisees must ensure that they have sufficient funds in their account to cover the royalty payment each month to avoid any penalties or disruptions to their franchise agreement.