Does Cool Binz have approval rights over the Managing Owner?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
he Franchise Agreement. Except as stated herein, you must designate at least one managing owner (the "Managing Owner") who will be our primary individual contact with the COOL BINZ Business and who we will approve in our sole discretion. A Managing Owner may, in our sole discretion, serve as the Managing Owner of more than one COOL BINZ Business that is owned by you; provided, however, that we may, in our sole discretion, require you to designate a person who will serve as the primary individual contact for this COOL BINZ Business (the "Designated Manager"). We must approve of the Designated Manager in writing, which we may grant in our sole discretion. The Managing Owner and, if applicable, the Designated Manager, must successfully complete our JumpStart and Initial Training Programs as described in and required by the Franchise Agreement. The Designated Manager is not required to have an ownership interest in the COOL BINZ Business.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, Cool Binz retains approval rights over the Managing Owner. Specifically, Cool Binz must approve the Managing Owner in its sole discretion. The Managing Owner is Cool Binz's primary contact for the Cool Binz Business.
Cool Binz also maintains approval rights over a Designated Manager, should one be required. The Designated Manager does not need to have an ownership stake in the Cool Binz Business. Both the Managing Owner and, if applicable, the Designated Manager must complete Cool Binz's JumpStart and Initial Training Programs.
This requirement allows Cool Binz to ensure that individuals in key management positions meet their standards and are adequately trained. It also gives Cool Binz a direct line of communication and a degree of control over the operation of each franchise location. This is a fairly common practice in franchising, as franchisors want to ensure that franchisees have competent management in place to protect the brand and maintain consistent standards.