Is there a Supplier Evaluation Fee for Mrcool franchisees requesting approval of new suppliers?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
"Supplier Evaluation Fee" refers to and means the fee determined by Franchisor, in Franchisor's Reasonable Business Judgment, and based upon the fees and/or expenses incurred by Franchisor in connection with the evaluation of a request by Franchisee for Franchisor's consideration and/or review of a potential supplier. Under no circumstance is Franchisor required to approve of suppliers requested by Franchisee.
- (6) If Franchisee proposes or requests that Franchisor consider the approval of products, services, equipment, supplies, suppliers and/or distributors for use in the Franchised Business where such products, services, equipment, supplies, suppliers and/or distributors are not presently, at the time of Franchisee's request, approved for use in the System: (a) Franchisee must provide Franchisor with a written request where Franchisee specifies the product, service, equipment, supply, supplier and/or distributor, the reason for Franchisee's request; (b) Shall timely submit to Franchisor such information, reports, specifications, and samples as Franchisor, in Franchisor's Reasonable Business Judgment requests; and (c) Shall pay to Franchisor a Supplier Evaluation Fee per requested product, service, equipment, supply, supplier and/or distributor to be considered including, but not limited to, the Supplier Evaluation Fees that Franchisor, in Franchisors Reasonable Business Judgment, establishes and assesses based on, among other things, the administrative costs and time associated with evaluating, assessing and testing the proposed product, service, equipment, supply, supplier and/or distributor including, but not limited to Franchisor's internal employees and independent third parties engaged and/or retained by Franchisor for evaluation and testing.
The foregoing fees and payments shall be paid by Franchisee to Franchisor within 14 days of the date of Franchisor's invoice.
Upon Franchisee's compliance with the foregoing, within 60 days of the completion of all inspections and evaluations, Franchisor shall notify Franchisee of Franchisor's approval or disapproval which shall be determined by Franchisor in Franchisor's Reasonable Business Judgment.
Under no circumstance shall the foregoing be construed as implying that Franchisor is required to approve alternative suppliers.
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to the 2025 Mrcool FDD, a Supplier Evaluation Fee is required if a franchisee proposes a new supplier for approval. This fee is determined by Mrcool based on their reasonable business judgment, considering the costs and expenses incurred in evaluating the potential supplier. Mrcool is not obligated to approve any supplier requested by the franchisee.
To request approval, the Mrcool franchisee must submit a written request specifying the supplier, product, service, equipment, or supply, along with the reason for the request. The franchisee must also provide any information, reports, specifications, and samples that Mrcool requests. The Supplier Evaluation Fee covers the administrative costs and time associated with evaluating, assessing, and testing the proposed supplier, including the costs of internal employees and independent third parties engaged by Mrcool for evaluation and testing.
The franchisee is required to pay the Supplier Evaluation Fee within 14 days of the date of Mrcool's invoice. Mrcool will then notify the franchisee of its approval or disapproval within 60 days of completing all inspections and evaluations. The approval decision is made by Mrcool in its reasonable business judgment. This process ensures that Mrcool maintains control over its supply chain and the quality of products and services offered under its brand name.