table_specific

What is Schedule 2 of the Mrcool Franchise Agreement related to?

Mrcool Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchise Agreement – Exhibit 2 Confidentiality Agreement

[THIS EXHIBIT IS FOR REFERENCE PURPOSES ONLY AS A SAMPLE FORM CONFIDENTIALITY AGREEMENT THAT FRANCHISOR MAY APPROVE FOR USE BY FRANCHISEE – BEFORE USING WITH AN EMPLOYEE OR CONTRACTOR FRANCHISEE SHOULD HAVE THIS AGREEMENT REVIEWED AND APPROVED BY AN INDEPENDENT LOCAL ATTORNEY HIRED BY FRANCHISEE]

CONFIDENTIALITY AGREEMENT (Sample Only)

This Agreement (the "Agreement") is entered into by the undersigned ("you") in favor of:

Recitals and Representations

WHEREAS, we are the owners of a licensed MRCOOL Center (hereinafter referred to as the "MRCOOL Center") that we independently own and operate as a franchisee;

WHEREAS, you are or are about to be an employee, independent contractor, officer and/or director of a MRCOOL Center that is independently owned and operated by us;

WHEREAS, in the course of your employment, independent contractor relationship and/or association with us, you may gain access to Confidential Information (defined below in this Agreement) and you understand that it is necessary to protect the Confidential Information and for the Confidential Information to remain confidential;

WHEREAS, our Franchisor, MRCOOL Franchising, LLC, is not a party to this agreement and does not own or manage the MRCOOL Center but is an intended third party beneficiary of this Agreement; and

WHEREAS, this Agreement is not an employment agreement and is only a confidentiality agreement in connection with information, materials and access that may be provided to you in connection with the MRCOOL Center.

NOW THEREFORE, you acknowledge and agree as follows:

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

What This Means (2025 FDD)

According to the 2025 Mrcool FDD, Exhibit 2 of the franchise agreement is a sample confidentiality agreement. This agreement is intended for use by the franchisee with their employees or contractors. Mrcool Franchising, LLC, is identified as a third-party beneficiary of this agreement, although they are not a direct party to it.

The confidentiality agreement is designed to protect the confidential information that employees or contractors of the Mrcool center may access during their association with the franchisee's business. The FDD emphasizes that franchisees should have this agreement reviewed and approved by an independent local attorney before using it with their staff.

This agreement is not an employment contract but specifically addresses confidentiality. It ensures that sensitive information remains protected, which is crucial for maintaining the integrity and competitive advantage of the Mrcool franchise system. The inclusion of Mrcool Franchising, LLC as a third-party beneficiary underscores the importance of protecting the franchisor's interests and proprietary information.

Prospective franchisees should understand that while Mrcool provides a sample confidentiality agreement, they are responsible for ensuring it complies with local laws and adequately protects their business interests. Consulting with a local attorney is essential to tailor the agreement to specific circumstances and legal requirements.

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.