Is the Cool Binz agreement binding upon Cool Binz and the franchisee?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
This is a Rider to the Franchise Agreement which is being executed concurrently with this Rider, between Franchisor and Franchisee.
Notwithstanding anything to the contrary in the Franchise Agreement, in the event of a conflict between the terms of this Rider and the terms of the Franchise Agreement, the terms of this Rider shall control and supersede the Franchise Agreement. Any terms not defined herein shall have the same meanings as in the Franchise Agreement and any references to sections and paragraphs refer to the sections and paragraphs of the Franchise Agreement unless stated otherwise.
1. BACKGROUND.
We and you are parties to that certain Franchise Agreement that has been signed concurrently with the signing of this Rider (the "Franchise Agreement"). This Rider is annexed to and forms part of the Franchise Agreement. This Rider is being signed because (a) the offer or sale of the franchise for the COOL BINZ Business that you will operate under the Franchise Agreement was made in the State of North Dakota, and/or (b) you are a resident of North Dakota and your Business will be located or operated in North Dakota.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
The 2025 Cool Binz Franchise Disclosure Document includes an addendum to the franchise agreement for use in North Dakota, which clarifies the binding effect of the agreement. According to this addendum, the Franchise Agreement is signed concurrently with the Rider, indicating that both documents are part of a single, binding agreement between Cool Binz and the franchisee. This Rider is specifically applicable if the franchise is offered or sold in North Dakota, or if the franchisee is a resident of North Dakota and will operate the business there.
In the event of any conflict between the terms of the Rider and the Franchise Agreement, the terms of the Rider will take precedence. This ensures that franchisees in North Dakota are subject to specific protections or modifications required by North Dakota law. The addendum also states that any terms not defined within the Rider will have the same meanings as in the Franchise Agreement, maintaining consistency and clarity in the overall agreement.
Furthermore, the addendum explicitly states that it is annexed to and forms part of the Franchise Agreement, reinforcing the integrated nature of the two documents. This means that both Cool Binz and the franchisee are bound by the terms and conditions outlined in both the Franchise Agreement and the North Dakota Rider, ensuring a legally enforceable relationship. Prospective franchisees should carefully review both documents to understand their rights and obligations fully.