factual

Are there any contractual obligations imposed on Mrcool to maintain, repair, update, or upgrade a franchisee's computer systems?

Mrcool Franchise · 2025 FDD

Answer from 2025 FDD Document

the future. (Franchise Agreement, Article 9.A).

Computer System

You must purchase, license and use the computer, business management, and ordering systems that we designate. You must purchase at least five configured computers with licensed business management configuration. Additionally, you must purchase and maintain a computer system on-site at your Center Location. Generally, you will be required to obtain a computer system that will consist of certain hardware and software and, among other things, you will be required to meet our requirements for: (a) back office and business management systems; (b) security systems; (c) printers and other peripheral devices; (d) archive and back-up systems; and (e) high speed internet access. The initial upfront cost of the business management and computer system that you will be required to purchase ranges from $51,647 to $150,000. You are obligated to install and/or access all required business management and software upgrades as recommended by the manufacturer of the computer and the licensor of business management system. You are responsible for hardware repairs or replacement of systems that are no longer covered under warranty. Your estimated costs for the maintenance, repair and updates for the computer and business management systems is estimated to not exceed $5,000 per year. There are no contractual obligations imposed on us to maintain, repair, update, or upgrade your computer systems. We will have independent access to all of the information and data that is electronically transmitted on your business management system and will have access to all data related to the financial performance of your Center. There are no contractual

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–35)

What This Means (2025 FDD)

According to Mrcool's 2025 Franchise Disclosure Document, Mrcool franchisees are responsible for purchasing, licensing, and maintaining specific computer systems. The initial cost for the required computer and business management systems ranges from $51,647 to $150,000. Franchisees must also install and access all recommended software upgrades. The estimated annual cost for maintenance, repairs, and updates to these systems is up to $5,000.

Importantly, the FDD states that Mrcool has no contractual obligation to maintain, repair, update, or upgrade a franchisee's computer systems. This means the franchisee bears the full responsibility and cost for keeping their systems operational and current. Mrcool, however, retains independent access to all data transmitted through the franchisee's business management system, including financial performance data, without any contractual limitations.

This arrangement places the onus on the franchisee to budget for and manage their IT infrastructure. While Mrcool mandates the systems to be used and can access the data, they do not provide direct support or financial assistance for upkeep. Prospective franchisees should carefully consider these costs and ensure they have a plan for managing their technology needs. It is advisable to inquire with Mrcool about approved vendors or support resources that can assist with these responsibilities.

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.