Under what conditions is the initial franchise fee considered fully earned by Mrcool?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
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Franchise Agreement
When you sign a Franchise Agreement you must pay to us a non-refundable initial franchise fee (the "Initial Franchise Fee"). The Initial Franchise Fee is $50,000 for a geographic operating territory that includes a base territory of approximately 2,000,000 households (a "Base Territory"). If at the time of signing your Franchise Agreement, subject to market type, availability, and our discretion, you wish to increase the size of your Base Territory by adding additional households, the Initial Franchise Fee will be increased $0.05 for each additional household located within your Base Territory above 2,000,000 households at the time of signing the Franchise Agreement. The Initial Franchise Fee is fully earned by us upon payment. The method we use to calculate the Initial Franchise Fee is uniform for all franchises.
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the initial franchise fee is considered fully earned upon payment. Specifically, when a franchisee signs a Franchise Agreement, they must pay Mrcool a non-refundable initial franchise fee. This fee is $50,000 for a geographic operating territory that includes a base territory of approximately 2,000,000 households.
If a prospective Mrcool franchisee wishes to increase the size of their base territory beyond 2,000,000 households, the initial franchise fee will increase by $0.05 for each additional household. This adjustment to the initial fee is determined at the time of signing the Franchise Agreement, subject to market type, availability, and Mrcool's discretion.
It's important to note that the initial franchise fee is non-refundable, meaning that under no circumstances will Mrcool return the initial franchise fee to the franchisee. This is a common practice in the franchise industry, as the fee compensates the franchisor for the initial costs of granting the franchise and providing initial training and support. Mrcool also offers a 20% discount off the initial franchise fee for qualified veterans, which must be requested at the time of the initial franchise application and requires documented military service.