Under what circumstances can the Mrcool franchise agreement be modified?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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. |
|---|---|---|---|
| s. | Modification of the agreement | 18.L. | Requires writing signed by you and us, except for unilateral changes that we may make to the Manuals or our unilateral reduction of the scope of a restrictive covenant that we may make in our discretion. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–50)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the franchise agreement can be modified under specific conditions. Generally, modifications require a written agreement signed by both the franchisee and Mrcool. This ensures that both parties are in accord with any changes made to the original agreement, providing a layer of protection and clarity. This is a fairly standard clause in franchise agreements.
However, Mrcool retains the right to make unilateral changes to the manuals associated with the franchise. Mrcool can also unilaterally reduce the scope of a restrictive covenant at its discretion. These types of unilateral changes are not uncommon, as franchisors often need the flexibility to update operational procedures and protect the brand.
Prospective franchisees should be aware of these modification terms, understanding that while most changes require mutual agreement, Mrcool has the authority to alter certain aspects of the franchise operations and restrictive covenants without the franchisee's direct consent. It would be prudent for a potential franchisee to discuss specific examples of modifications with existing franchisees and to seek clarification from Mrcool regarding the types of changes they might expect during the term of the agreement.