After termination or expiration of the Mrcool franchise, what geographic areas are covered by the non-competition covenant?

Question

Accepted Answer

| m. | Conditions for franchisor's approval of transfer                     | 14.C.             | For approval of your transfer, you must provide us with 30 days prior written notice of the proposed transfer; you and your Owners must not have defaulted in your obligations under the Franchise Agreement and all other agreements with us; you and your Owners must be in compliance with your obligations under the Franchise Agreement and all other agreements with us; the transferee must agree to be bound by all of the terms and provisions of the Franchise Agreement; the transferee's owners and their spouses must personally guarantee all of the terms and provisions of the Franchise Agreement; you and your Owners and their spouses must sign a general release in favor of us; the transfer must provide for the assignment and/or ownership of the approved location for the Franchised Business, and the transferees continued use and occupancy of such location throughout the term of the Franchise Agreement; the assets of the Franchised Business must be transferred to the transferee; the transferee and the transferee's owners and managers, at the transferee's expense must complete our training programs; we waive our right of first refusal; and we approve of the transfer and transferee in writing and subject to our discretion; you pay the Transfer Fee (subject to applicable state laws). |
|----|-------------------------------------------------------------------------|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| n. | Franchisor's right of first refusal to acquire franchisee's business | 14.F.             | We have the right to match any offer to purchase your Center or the Corporate Entity operating your Center.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| o. | Franchisor's option to purchase | Not | Not applicable. |
|  | franchisee's business | applicable |  |
| p. | Death or disability of franchisee | 14.D. | If you are an individual, within 30 days of the |
|  |  |  | death or |
|  |  |  | permanent disability of Franchisee, your executor and/or |
|  |  |  | legal representative must appoint an Operating Manager |
|  |  |  | approved by us and within 60 |
|  |  |  | days of such appointment the |
|  |  |  | Operating Manager must complete, to our satisfaction, our |
|  |  |  | initial training program. Within 12 months of the date of |
|  |  |  | death or disability, the Franchise Agreement must be |
|  |  |  | transferred to a transferee approved by us and otherwise |
|  |  |  | transferred in accordance with the terms of the Franchise |
|  |  |  | Agreement. If the franchisee is a Corporate Entity, within |
|  |  |  | 30 |
|  |  |  | days of the death or permanent disability of your |
|  |  |  | Managing Owner, if there are other Owners, must appoint a |
|  |  |  | replacement Operating Manager approved by us and within |
|  |  |  | 60 days of such appointment the replacement Operating |
|  |  |  | Manager must complete, to our satisfaction, our initial |
|  |  |  | training program. |
| q. | Non-competition covenants during the term of the franchise           | 6                 | No involvement in any competitive business and must comply with confidentiality, non-disclosure and non solicitation covenants.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

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| r. | Non-competition covenants after the franchise is terminated or expires | 6, 17.E. | No involvement, ownership or interest whatsoever for 24 months in any competing business in: your Designated Territory; a 25-mile radius of your Designated Territory; a 10-mile radius of the Designated Territory of any other Center; and you must comply with confidentiality, non disclosure and non-solicitation covenants.        |

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–50)

After termination or expiration of the Mrcool franchise, what geographic areas are covered by the non-competition covenant?

Answer from 2025 FDD Document

What This Means (2025 FDD)

m.	Conditions for franchisor's approval of transfer	14.C.	For approval of your transfer, you must provide us with 30 days prior written notice of the proposed transfer; you and your Owners must not have defaulted in your obligations under the Franchise Agreement and all other agreements with us; you and your Owners must be in compliance with your obligations under the Franchise Agreement and all other agreements with us; the transferee must agree to be bound by all of the terms and provisions of the Franchise Agreement; the transferee's owners and their spouses must personally guarantee all of the terms and provisions of the Franchise Agreement; you and your Owners and their spouses must sign a general release in favor of us; the transfer must provide for the assignment and/or ownership of the approved location for the Franchised Business, and the transferees continued use and occupancy of such location throughout the term of the Franchise Agreement; the assets of the Franchised Business must be transferred to the transferee; the transferee and the transferee's owners and managers, at the transferee's expense must complete our training programs; we waive our right of first refusal; and we approve of the transfer and transferee in writing and subject to our discretion; you pay the Transfer Fee (subject to applicable state laws).
n.	Franchisor's right of first refusal to acquire franchisee's business	14.F.	We have the right to match any offer to purchase your Center or the Corporate Entity operating your Center.
o.	Franchisor's option to purchase	Not	Not applicable.
	franchisee's business	applicable
p.	Death or disability of franchisee	14.D.	If you are an individual, within 30 days of the
			death or
			permanent disability of Franchisee, your executor and/or
			legal representative must appoint an Operating Manager
			approved by us and within 60
			days of such appointment the
			Operating Manager must complete, to our satisfaction, our
			initial training program. Within 12 months of the date of
			death or disability, the Franchise Agreement must be
			transferred to a transferee approved by us and otherwise
			transferred in accordance with the terms of the Franchise
			Agreement. If the franchisee is a Corporate Entity, within
			30
			days of the death or permanent disability of your
			Managing Owner, if there are other Owners, must appoint a
			replacement Operating Manager approved by us and within
			60 days of such appointment the replacement Operating
			Manager must complete, to our satisfaction, our initial
			training program.
q.	Non-competition covenants during the term of the franchise	6	No involvement in any competitive business and must comply with confidentiality, non-disclosure and non solicitation covenants.