Under what conditions can Mrcool prohibit a franchisee from soliciting customers outside their Designated Territory?

According to Mrcool's 2025 Franchise Disclosure Document, Mrcool has the right to prohibit a franchisee from soliciting customers located outside of the franchisee's designated territory. This decision is based on Mrcool's reasonable business judgment, and can be enacted for any reason or no reason at all.

This means that Mrcool franchisees need to be aware that their marketing efforts should primarily target their designated territory. While some marketing mediums may reach beyond the designated territory, Mrcool reserves the right to direct the franchisee to discontinue such marketing efforts. This ensures that franchisees focus on their local market and do not encroach on other franchisees' territories.

This clause gives Mrcool significant control over the franchisee's marketing activities and ensures that the marketing efforts of individual franchisees align with the overall business strategy. Prospective franchisees should carefully consider this provision and understand the limitations it places on their ability to market outside their designated territory. They should also inquire about how Mrcool defines and enforces these restrictions to avoid potential conflicts or misunderstandings.