What specific actions are Mrcool franchisees required to take upon receiving the receipt?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
- (q) Franchisee fails, upon receiving actual or constructive notice, shall: (1) immediately notify
Franchisor of any known breach of the Confidentiality Agreement by any person or entity; (2) immediately notify Franchisor of facts and information that would cause a reasonable person to believe that a person or entity violated the Confidentiality Agreement and/or is in the process of violating the Confidentiality Agreement; and (3) take reasonable steps including ,notice to Franchisor and Franchisee's consultation with Franchisee's legal counsel, to prevent any person or entity from violating the terms of the Confidentiality Agreement and/or otherwise publicly disseminating Confidential Information;
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, a franchisee who receives actual or constructive notice of a breach or potential breach of the Confidentiality Agreement has specific obligations. The franchisee must immediately notify Mrcool of any known breach of the Confidentiality Agreement by any person or entity. They must also immediately inform Mrcool of any facts or information that would lead a reasonable person to believe that someone has violated or is in the process of violating the Confidentiality Agreement.
In addition to notifying Mrcool, the franchisee is required to take reasonable steps to prevent any person or entity from violating the terms of the Confidentiality Agreement or publicly disseminating confidential information. These steps include notifying Mrcool and consulting with the franchisee's legal counsel. This requirement highlights the importance Mrcool places on protecting its confidential information and the active role franchisees must take in safeguarding it.
This obligation is significant for prospective franchisees as it demonstrates the legal and ethical responsibilities associated with operating a Mrcool franchise. Franchisees must be vigilant in protecting confidential information and proactive in addressing any potential breaches. Failure to comply with these requirements could have legal and financial consequences for the franchisee.