When is the transfer fee payable to Mrcool?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
| and/or to enforce the terms of the Franchise Agreement or a termination of the Franchise Agreement. Includes costs and expenses of re-inspections required by quality assurance audit. | |||
|---|---|---|---|
| NSF Check Fee of Failed Electronic Fund Transfer | 5% of amount or $50, whichever is greater, or maximum fee allowed by law | On demand | Payable if your bank account possesses insufficient funds and/or fails to process a payment or transfer related to a fee due from you to us. |
| Non-compliance | Actual fees, costs, and expenses | On demand | Fees, costs and expenses incurred by us as a result of your breach or noncompliance with the terms of your Franchise Agreement. |
| Supplier Review | Actual fees, costs, and expenses | Within 14 days of invoice | You must pay us the costs incurred by us to review and evaluate a potential supplier, product, or service that you submit to us for approval. |
| Management Service | Actual costs incurred by us | As invoiced | Payable if we elect to manage the Franchised Business due to a failure by you to have the Franchised Business managed by an authorized Managing Owner or Manager. |
| Transfer | $20,000 | On demand | Payable if we approve your transfer request, but prior to execution of final transfer agreements and authorization. |
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the transfer fee is payable 'on demand.' Specifically, the $20,000 transfer fee is due if Mrcool approves a franchisee's transfer request. This payment must be made before the final transfer agreements are executed and authorization is granted.
In practical terms, this means that a Mrcool franchisee looking to sell their franchise must be prepared to pay the $20,000 fee as a condition of Mrcool's approval. This fee is in addition to any other costs associated with the sale, such as legal or brokerage fees. The 'on demand' payment term suggests that Mrcool could request immediate payment once the transfer is approved, so franchisees should have the funds readily available.
It is important for prospective franchisees to understand this payment schedule, as it impacts the financial planning for a potential sale. Franchisees should also clarify with Mrcool what constitutes 'approval' of the transfer to avoid any ambiguity about when the fee becomes due. Understanding the timing and conditions for this fee is crucial for managing the transfer process effectively.