Under what conditions is the Development Center Initial Franchise Fee waived for additional Mrcool Development Centers?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
| OTHER AUTHORIZED DEVELOPMENT CENTERS: Provided that Franchisee is not in default of the |
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| terms of this MRCOOL Multi-Unit Development Agreement (including but not limited to the Development |
| Schedule set forth below) and that neither Franchisee nor Franchisee’s affiliates are in default of any Franchise |
| Agreement or other agreement with Franchisor, the Development Center Initial Franchise Fee for each additional |
| Development Center (over and above the First Development Center), is: $0 (Waived), payable at the time of |
| signing the Franchise Agreement for each Development Center. |
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the Development Center Initial Franchise Fee is waived for additional Development Centers under specific conditions. The standard initial franchise fee for the first Development Center is $50,000. However, for each additional Development Center beyond the first, this fee is waived, effectively setting it at $0.
This waiver is contingent upon the franchisee remaining in compliance with the MRCOOL Multi-Unit Development Agreement. This includes adhering to the Development Schedule outlined in the agreement. Furthermore, neither the franchisee nor their affiliates can be in default of any existing Franchise Agreement or any other agreement they have with Mrcool.
In practical terms, this means a franchisee looking to expand with multiple Mrcool Development Centers can save significantly on initial franchise fees, provided they meet the obligations of their development agreement and maintain good standing with the franchisor. Failing to meet the development schedule or defaulting on other agreements could result in the initial franchise fee waiver being revoked for subsequent centers.