What action must a Cool Binz franchisee take immediately upon receiving notice of insurance non-compliance to avoid termination?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
You fail to acquire or continuously maintain the required minimum levels of insurance, fail to have us, BELFOR USA Group Inc. and/or BELFOR Franchise Group, LLC named as an additional insured, or fail to provide a current certificate of insurance to us as required in Section 7.C of this Agreement.
However, we will not exercise our right to terminate this Agreement if upon receipt of notice from us, you immediately cease operating the COOL BINZ Business and obtain such insurance within ten (10) days after written notice is delivered to you prior to resuming operation;
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, if a franchisee fails to maintain the required minimum levels of insurance, or fails to have Cool Binz and related entities named as additional insured, or fails to provide a current certificate of insurance, Cool Binz has the right to terminate the franchise agreement. However, Cool Binz will not exercise its right to terminate the agreement if the franchisee immediately ceases operating the Cool Binz business and obtains the required insurance within ten days after receiving written notice. The franchisee can then resume operations.
This means that a Cool Binz franchisee who receives a notice of insurance non-compliance must immediately stop operating their Cool Binz business. They then have a 10-day window to acquire the necessary insurance coverage and provide proof of that insurance to Cool Binz. If the franchisee meets these conditions, Cool Binz will not terminate the franchise agreement, and the franchisee can resume business operations.
It is important for prospective Cool Binz franchisees to understand the insurance requirements outlined in Section 7.C of the Franchise Agreement and to maintain continuous compliance. Failure to do so could lead to business interruption and potential termination of the franchise agreement. Franchisees should also ensure they can quickly obtain the necessary insurance coverage if a lapse occurs to minimize downtime and avoid termination.