Does the agreement to arbitrate Cool Binz disputes survive the termination or expiration of the Franchise Agreement?

According to Cool Binz's 2025 Franchise Disclosure Document, the agreement to arbitrate disputes will indeed survive the termination or expiration of the Franchise Agreement. This means that even after the franchise relationship ends, both Cool Binz and the franchisee are still bound to resolve certain disputes through arbitration rather than litigation.

This clause ensures that certain disputes arising from the franchise relationship can be resolved efficiently and cost-effectively, as arbitration is generally faster and less expensive than going to court. However, it also means that franchisees give up their right to sue Cool Binz in court for covered disputes, accepting the arbitrator's decision as final and binding. Franchisees should be aware of the implications of this clause, especially concerning potential disputes that may arise after the franchise term concludes.

However, Cool Binz is not required to arbitrate in certain situations, and may initiate litigation in court if the dispute concerns allegations that the franchisee has violated federally protected intellectual property rights, warranty issues, restrictive covenants, fraud, misrepresentation, insolvency, or any claims where the damages alleged are less than $50,000. This allows Cool Binz to pursue legal action in court for specific and potentially critical violations, while the franchisee is bound to arbitration for other disputes.