What alternative to repurchasing equipment is available to a Cool Binz franchisee upon expiration or termination of the Franchise Agreement?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon expiration or termination of the Franchise Agreement, Franchisee will cooperate with CBI to repurchase all or some of the Equipment pursuant to the terms in the Franchise Agreement, unless Franchisee has arranged for the sale of the Equipment to another COOL BINZ franchisee with the consent of CBI.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, upon the expiration or termination of the Franchise Agreement, a franchisee has an alternative to having Cool Binz repurchase the equipment. Instead of a repurchase, a Cool Binz franchisee can arrange for the sale of the equipment to another Cool Binz franchisee.
However, this alternative is contingent upon obtaining Cool Binz's consent for the sale. This means that a franchisee cannot independently sell the equipment to another franchisee without the franchisor's approval. Cool Binz maintains control over the transfer of its proprietary equipment within the franchise network.
This provision offers some flexibility for franchisees who may prefer to recoup more value from their equipment by selling it privately to another franchisee rather than relying solely on Cool Binz's repurchase terms. However, it's essential to secure Cool Binz's consent to ensure compliance with the franchise agreement and facilitate a smooth transfer of ownership.