How is the waiver of the Mrcool Development Center Initial Franchise Fee dependent on the franchisee's adherence to the Development Schedule?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
| Development Center Initial Franchise Fee for Other Development Centers | |
|---|---|
| OTHER AUTHORIZED DEVELOPMENT CENTERS: Provided that Franchisee is not in default of the | |
| 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 waiver of the Development Center Initial Franchise Fee for additional centers hinges on the franchisee's compliance with the Mrcool Multi-Unit Development Agreement. This includes, but isn't limited to, adhering to the Development Schedule. Furthermore, neither the franchisee nor their affiliates should be in default of any Franchise Agreement or other agreements with Mrcool.
In practical terms, a Mrcool franchisee seeking to develop multiple centers beyond the first one will only have the initial franchise fee waived for those additional centers if they are on track with the Development Schedule. This schedule likely outlines specific timelines and milestones for opening new locations. Failure to meet these deadlines or any other defaults could result in the franchisee having to pay the initial franchise fee for each subsequent center, which would significantly increase their investment costs.
This conditionality underscores the importance of carefully reviewing and understanding the Development Schedule before signing the Mrcool Multi-Unit Development Agreement. Prospective franchisees should assess their capabilities and resources to ensure they can realistically meet the required timelines. It also highlights the need to maintain good standing with Mrcool across all agreements to qualify for the fee waiver, which is a considerable benefit for multi-unit developers.