Does the Mrcool Site Selection Acknowledgment grant any territorial rights to the franchisee?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchise Agreement – Exhibit 3 Site Selection Acknowledgment
MRCOOL SITE SELECTION ACKNOWLEDGMENT
(THIS DOCUMENT DOES NOT CONSTITUTE THE APPROVAL OF A CENTER LOCATION, DOES NOT GRANT OR DESIGNATE AN OPERATING TERRITORY AND DOES NOT GRANT ANY TERRITORIAL RIGHTS)
- (4) If, as of the Effective Date or other appropriate periods after the Effective Date, Franchisee has not selected a proposed Center Location that is approved by Franchisor but, Franchisee has identified an area in which Franchisee may look to secure a Center location for the Franchised Business, Franchisor, in Franchisor's discretion and Reasonable Business Judgment, may enter into the Site Selection Acknowledgment attached to this Agreement as Exhibit 3.
If executed by Franchisor, within the Exhibit 3 Site Selection Acknowledgment, Franchisor shall designate a geographic area (the "Site Selection Area") within which Franchisor, during the Site Selection Period, shall not, on behalf of any third party, approve any new Center Location.
Franchisee agrees that the Site Selection Acknowledgment does not constitute Franchisor's approval of a proposed Center Location, does not constitute Franchisor's designation of Franchisee's Designated Territory, does not afford Franchisee any territorial rights in or to the Site Selection Area, and does not extend and/or modify any obligation on the part of Franchisee to timely secure an approved Center Location in accordance with the terms of this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the Site Selection Acknowledgment does not grant any territorial rights to the franchisee. The document explicitly states that it does not constitute approval of a Center Location, designate an operating territory, or grant any territorial rights. This acknowledgment is used when a franchisee has identified a potential area for their Mrcool Center but has not yet secured an approved location.
If Mrcool executes the Site Selection Acknowledgment, they will designate a geographic area (the "Site Selection Area") where they will not approve any new Center Locations for other third parties during the Site Selection Period. However, the franchisee acknowledges that this agreement does not guarantee territorial rights within the Site Selection Area, nor does it obligate the franchisee to secure an approved Center Location within a specific timeframe.
This Site Selection Acknowledgment serves only as a preliminary step in the site selection process and does not provide any exclusive rights or guarantees to the franchisee. The franchisee must still independently secure an approved Center Location and negotiate a Designated Territory with Mrcool to obtain territorial rights, as outlined in the Franchise Agreement.