According to the Cool Binz franchise agreement, what is attached as Exhibit D?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
- Exhibit A Designated Personnel
- Exhibit B Franchise Management Software License Agreement
- Exhibit C Telephone and Other Listing Agreement
- Exhibit D Guaranty and Assumption of Franchisee's Obligations
- Exhibit E Electronic Funds (EFT) Authorization
- Exhibit F State Addenda to the Franchise Agreement
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, Exhibit D to the franchise agreement is the Guaranty and Assumption of Franchisee's Obligations. This exhibit likely outlines the personal guarantees required from the franchisee, ensuring they are personally liable for the franchise's financial and contractual obligations.
For a prospective Cool Binz franchisee, this means they will likely need to sign a personal guarantee, making them personally responsible for the debts and obligations of the franchise. This is a common practice in franchising, as it provides the franchisor with additional security and recourse in case of default or breach of contract. Franchisees should carefully review this exhibit with legal counsel to fully understand the extent of their personal liability.
It is important for potential Cool Binz franchisees to understand the implications of a personal guarantee. This could put their personal assets at risk if the franchise fails or if they breach the franchise agreement. Franchisees should assess their financial situation and risk tolerance before signing the franchise agreement and the Guaranty and Assumption of Franchisee's Obligations.