Under what conditions can the Mrcool Multi-Unit Development Agreement be modified?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
| q. | Non-competition covenants during the term of the franchise | Not applicable | Not applicable as to Multi-Unit Development Agreement. However, each Center developed pursuant to Multi-Unit Development Agreement will be subject to non-competition covenants set forth in each respective Franchise Agreement. |
|---|---|---|---|
| r. | Non-competition covenants after the franchise is terminated or expires | Not applicable | Not applicable as to Multi-Unit Development Agreement. However, each Center developed pursuant to Multi-Unit Development Agreement will be subject to non-competition covenants set forth in each respective Franchise Agreement. |
| s. | Modification of the agreement | 5.4, 7.11 | Only by written agreement between you and us or if |
| governing law requires a modification. We can change | |||
| the form of the Franchise Agreement for future Centers | |||
| which will not alter your obligations under the Multi | |||
| Unit Development Agreement. |
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 Multi-Unit Development Agreement can only be modified under specific conditions. Mrcool and the franchisee must agree to any modifications in writing. Additionally, modifications may be required if governing law mandates a change.
It's important to note that Mrcool retains the right to change the form of the Franchise Agreement for future centers developed under the Multi-Unit Development Agreement. However, these changes to the Franchise Agreement will not alter the franchisee's obligations under the existing Multi-Unit Development Agreement.
This means that while the core terms of the development agreement are protected unless both parties consent or the law requires changes, the specific terms of individual franchise agreements for future locations could evolve. Prospective Mrcool franchisees should understand this dynamic, as it provides Mrcool with some flexibility to adapt the franchise model over time without directly impacting the development agreement itself.