About MRCOOL Franchise
MRCOOL Franchising, LLC offers franchises for MRCOOL® Distribution Centers, which are warehouse distribution centers.
Franchisees distribute "MRCOOL" branded heating, ventilation, and air conditioning ("HVAC") products, provide HVAC installation services, HVAC equipment servicing, and other related products and services.
The target customers are those in need of HVAC products, installation, and servicing.
MRCOOL Franchise Cost & Fees
Minimum Investment
$1.2M
Average Investment
$4.1M
Maximum Investment
$6.9M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $50,000 | One-time payment upon signing |
| Royalty Fee | 1% of quarterly Gross Sales or minimum quarterly royalty of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 2% of Gross Sales, currently .75% of Gross Sales (Brand Development Fund) | National brand fund |
| Total Investment Range | $1,177,676 – $6,933,902 | Includes build-out, inventory, working capital |
The investment range of $1.2M–$6.9M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (1% of quarterly Gross Sales or minimum quarterly royalty) and marketing fee (Up to 2% of Gross Sales, currently .75% of Gross Sales (Brand Development Fund)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $50,000 | $50,000 |
| Construction and Leasehold Improvements | $160,660 | $308,750 |
| Lease Deposits – Three Months | $28,125 | $90,000 |
| Furniture, Fixtures and Equipment | $60,698 | $123,117 |
| Signage | $5,875 | $12,740 |
| Computer, Software and Business managements System | $51,647 | $150,000 |
| Grand Opening Marketing | $2,000 | $5,000 |
| Initial Inventory | $673,485 | $5,877,119 |
| Utility Deposits | $1,274 | $1,912 |
| Insurance Deposits – Three Months | $5,625 | $12,375 |
| Travel for Initial Training | $740 | $3,600 |
| Professional Fees | $16,320 | $38,335 |
| Licenses and Permits | $829 | $43,865 |
| Warehouse Supplies | $12,366 | $16,135 |
| Printing, Stationary, and Office Supplies | $976 | $2,145 |
| Additional Funds – Three Months | $107,056 | $199,809 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $20,000 |
| Renewal Fee | $10,000 |
| Technology Fee | Up to $2,000 per month, currently not assessed |
| Audit Fee | Cost of Audit (if underreporting of 2% or greater) |
| Minimum Quarterly Gross Sales | The difference between your quarterly Gross Sales and the Minimum Quarterly Gross Sales as follows: Year 1 – $500,000 per quarter; Year 2 – $600,000 per quarter; Year 3 – $720,000 per quarter; Year 4 and thereafter – $864,000 per quarter (on demand, if Center fails to meet threshold, franchisee may cure by paying royalty difference) |
| Local Marketing | Up to 8% of Gross Sales, currently 2% of Gross Sales (as incurred, must spend not less than 2% of Gross Sales each calendar quarter on pre-approved marketing) |
| Business Management System | Up to $8,000 per month, currently not assessed (Monthly as invoiced) |
| Contact Center | Up to 3% of Gross Sales, currently not assessed (Monthly as invoiced) |
| Local and Regional Advertising Cooperatives | As established by cooperative members (as established by cooperative members) |
| Annual Conference Attendance Fee | Our then current conference fee, not greater than $1,500 (When invoiced and before conference) |
| Dealer Directed Sales Commissions | Up to 5% of Gross Sales (as incurred, if franchisor provides customers) |
| Additional Employee Initial Training | Our then current training fee, currently $899 per person per day (When invoiced and prior to training) |
| Supplemental On-Site Training | Our then current daily rate per trainer, plus expenses we incur. Current rate is $899 per day (When invoiced and prior to training) |
| Interest | 18% per annum from due date (On demand) |
| Reporting Non-Compliance | $150 per occurrence (14 days of invoice) |
| Operations Non-Compliance | $450 to $1,000 per occurrence (14 days of invoice) |
| Payment Non-Compliance | $150 per occurrence (14 days of invoice) |
| Quality Assurance Audit | Actual costs incurred by us (as invoiced) |
| Collections | Actual fees, costs, and expenses (on demand) |
| NSF Check Fee of Failed Electronic Fund Transfer | 5% of amount or $50, whichever is greater, or maximum fee allowed by law (on demand) |
| Non-compliance | Actual fees, costs, and expenses (on demand) |
| Supplier Review | Actual fees, costs, and expenses (within 14 days of invoice) |
| Management Service | Actual costs incurred by us (as invoiced) |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | approximate one week period |
| Classroom Training | 37 |
| On-the-Job Training | 9 |
| Training Location | Hickory, Kentucky |
| Additional Training | We may require that you and your Operating Manager participate in supplemental on-site training that we may designate and require in our discretion. You will be required to pay our then current supplemental training fee, currently $899, per on-site trainer, per day, plus travel expenses, meals and accommodation expenses incurred by us. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive, Protected |
| Exclusive Territory | No |
| Territory Size | approximately 1,000,000 households (a “Base Territory”) |
| Description | An area containing approximately 1,000,000 households (a “Base Territory”). The Initial Franchise Fee can be increased by $0.05 for each additional household above 1,000,000. The number of households is determined in the aggregate and calculated based on raw data without regard to demographics or age. While not exclusive, the franchisor will not establish or grant another franchisee the right to establish a MRCOOL Center within your Designated Territory, except for Reserved Rights (other channels, competitive brands, etc.). |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | one additional 10-year term |
| Renewal Fee | $10,000 |
| Renewal Conditions | To renew your franchise you must be in compliance with the terms of your Franchise Agreement, provide us with one 180 days prior written notice of your request to renew, sign our then current form of Franchise Agreement and related agreements for the renewal term, sign a general release in our favor, pay a renewal fee, remodel and upgrade your Center to meet our standards and specifications, secure and possess the legal right to continue to occupy the premises of your Center location, and meet all other renewal requirements contained in the Franchise Agreement. Your owners must be in compliance with their agreements with us including the Franchise Owner and Spouse Agreement and Guaranty and they must personally guaranty the terms of your renewal Franchise Agreement which may contain terms materially different from your current Franchise Agreement. |
| Transfer Fee | $20,000 |
| Transfer Conditions | Transfers require prior written consent from Franchisor. Conditions include: 30 days prior written notice, satisfaction of all monetary and other obligations, no default or material breach of agreements, transferee bound by all terms and conditions, transferee's owners and spouses execute Franchise Owner and Spouse Agreement and Guaranty, all obligations assumed by transferee, execution of General Release, transferee may be required to execute current standard form Franchise Agreement, transferee must improve/modify/refurbish/renovate/remodel/upgrade Center Facility to current standards if not met within 5 years preceding transfer, original franchisee remains liable, transferee and managing owner/managers complete training, Franchisor's approval of material terms and conditions of transfer, transferee's employees/directors/officers/independent contractors/agents with access to Confidential Information execute Confidentiality Agreement, subordination of transferee's installment payments to franchisor's obligations, Franchisor's approval does not constitute warranty of suitability/profitability, transfer must comply with all applicable laws, transfer of business assets/lease must be in conjunction with agreement transfer, Franchisor's consent to transfer does not waive claims against franchisee. |
| Termination for Cause | Franchisor can terminate for various curable (10 or 30 days to cure) and non-curable defaults, including bankruptcy, abandonment, failure to meet development obligations, intentional non-compliance, illegal operations, misrepresentation, unauthorized transfer, disclosure of confidential information, engaging in harmful activity, felony conviction, or failure to meet minimum quarterly gross sales. |
| Non-Compete Period | 24 months |
| Non-Compete Details | During the term of the franchise, franchisee and owners cannot engage in any competitive business. After termination or expiration, for 24 months, franchisee and owners cannot have ownership or interest in any competing business within the Designated Territory, a 25-mile radius of the Designated Territory, or a 10-mile radius of any other MRCOOL Center. Must also comply with confidentiality, non-disclosure, and non-solicitation covenants. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Franchise Agreement requires that you or, if you are a Corporate Entity, your designated managing shareholder, member or partner (your “Managing Owner”) be personally responsible for the management and overall supervision of your Center. Your Managing Owner must complete, to our satisfaction, our initial training program and be approved by us. While we recommend that your Managing Owner personally participate in the day-to-day management and on-site supervision and operations of your Center, you may hire an operating manager to supervise and manage the day-to-day on-site operations of your Center provided that your operating manager: (a) meets all of our minimum standards and criteria for managers; (b) completes our initial training program; and (c) signs our confidentiality agreements (an “Operating Manager”). At all times, your Center must be managed and supervised on-site by either a Managing Owner or Operating Manager. If you own and operate multiple Centers then each Center must be managed and supervised on-site by an Operating Manager. |
| Required Suppliers | You may have to buy or lease items from the franchisor or a limited group of suppliers the franchisor designates. Our affiliate, HVAC Distributing LLC is currently designated as an approved supplier of the HVAC equipment that will be supplied to you. |
| Supply Restrictions | You may only offer and sell the Approved Services and Products. You may only use those products, supplies, equipment, technology systems, and services that we authorize and designate in writing. We may designate ourselves, our parent, and our affiliates as exclusive suppliers of source restricted goods and services. |
| Franchisor Revenue from Suppliers | We, our affiliates, and/or parents may receive rebates, payments and other material benefits from suppliers based on your purchases and we reserve the right to institute and expand rebate programs in the future. As of the Issuance Date of this Disclosure Document we have not received revenue from suppliers from franchisee purchases of source restricted products or services. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or other obligation. |
MRCOOL Franchise Earnings — Item 19
MRCOOL does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
MRCOOL does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
MRCOOL Litigation & Risk Flags
Clean Litigation RecordMRCOOL has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
MRCOOL System Growth
Total Units
0
Franchised
0
Company-Owned
0
MRCOOL currently operates 0 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 0 | 0 |
| 2021 | 0 | 0 | 0 |
| 2022 | 0 | 0 | 0 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, Wisconsin
MRCOOL Franchise — FAQ
The total investment to open a MRCOOL franchise ranges from $1,177,676 to $6,933,902, per their Franchise Disclosure Document. This includes the initial franchise fee of $50,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
MRCOOL charges a royalty fee of 1% of quarterly Gross Sales or minimum quarterly royalty of gross sales, plus a Up to 2% of Gross Sales, currently .75% of Gross Sales (Brand Development Fund) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the MRCOOL Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from MRCOOL to ensure you have the most up-to-date version.
MRCOOL does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
MRCOOL has been franchising since 2023. The FDD shows an investment range of $1,177,676-$6,933,902, a 1% of quarterly Gross Sales or minimum quarterly royalty royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $50,000 and the total investment ranges from $1,177,676 to $6,933,902 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from MRCOOL and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with MRCOOL or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com