Is the waiver of the Mrcool Development Center Initial Franchise Fee applicable if the franchisee is in default of any other agreement with the franchisor?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
opment Agreement – Schedule A** DEVELOPMENT INFORMATION SHEET
| A. List of State Administrators | G. List of Franchisees | |---|---| | B. List of Agents for Service of Process | H. List of Franchisees Who Have Left the System | | C. Operations Manual Table of Contents | I. State Specific Addenda | | D. Financial Statements | J. State Effective Dates | | E. Franchise Agreement | K. Receipts | | F. Multi-Unit Development Agreement | | [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
FIRST DEVELOPMENT CENTER: The Development Center Initial Franchise Fee for the First Development
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the waiver of the Development Center Initial Franchise Fee for additional centers is contingent upon the franchisee remaining in good standing with Mrcool. Specifically, to qualify for the waiver, the franchisee must not be in default of the MRCOOL Multi-Unit Development Agreement, including adherence to the Development Schedule.
Furthermore, neither the franchisee nor their affiliates can be in default of any Franchise Agreement or any other agreement with Mrcool. If these conditions are met, the Development Center Initial Franchise Fee for each additional Development Center beyond the first is waived, amounting to $0, which is payable at the time of signing the Franchise Agreement for each Development Center.
In practical terms, this means a Mrcool franchisee must diligently meet all obligations under their agreements with Mrcool to take advantage of the waived franchise fee for subsequent development centers. Failure to comply with the Development Schedule or any other agreement could result in the franchisee having to pay the standard Development Center Initial Franchise Fee for each additional center.