What must the transfer of a Mrcool franchised business be made in conjunction with?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
The Transfer of the Franchised Business, the lease for Franchisee's MRCOOL Center Facility, Center Location and the assets of the Franchised Business shall be made only in conjunction with
- a Transfer of this Agreement, approved by Franchisor in accordance with and subject to this Article 14 and the terms and conditions of this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the transfer of a franchised business, including the lease for the Mrcool Center Facility, Center Location, and assets, must occur in conjunction with a transfer of the Franchise Agreement. This transfer must be approved by Mrcool, adhering to Article 14 and the terms and conditions outlined in the agreement.
This means that a franchisee cannot simply sell the physical assets or location of their Mrcool business without also transferring the rights and obligations of the franchise agreement itself. This ensures that the new owner is officially recognized and approved by Mrcool, and that they agree to operate the business according to Mrcool's standards and guidelines.
The requirement protects Mrcool's brand and ensures consistency across all franchise locations. It also allows Mrcool to vet potential new franchisees to ensure they meet the company's criteria for business experience, financial resources, and moral character. Prospective franchisees should carefully review Article 14 of the franchise agreement to fully understand the requirements and procedures for transferring a Mrcool franchise.