What aspects of the Cool Binz franchise agreement, related to site selection and acquisition/lease, are detailed in Item 6 of the Disclosure Document?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
Before you open your COOL BINZ Business, we will:
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- Designate the Territory for a COOL BINZ Business (Section 1.D and the Summary Page of the Franchise Agreement). We do not provide any assistance with (a) selecting a business site or negotiation of any lease or purchase of any site, (b) conforming the site to local ordinances and codes and obtaining any required permits, or (c) hiring and training employees (other than the required training discussed in Section 3.A of the Franchise Agreement). Your business site must be located within the Territory and must contain at least 500 square feet and a minimum lot size of 0.5 to 1.0 acre, and must adhere to our standards and specifications, which includes demographics, size, local traffic, whether there are complementary businesses or competitors in the area, and similar characteristics. Your COOL BINZ Business site must be approved by us, in our sole discretion, which we will not unreasonably withhold provided that the site meets our minimum specifications. (Section 1.D of the Franchise Agreement). We will use commercially reasonable efforts to approve a suggested site in 30 days. Failure to find a site and commence operation of the COOL BINZ Business within eight (8) months of signing the Franchise Agreement may result in termination of the Franchise Agreement (Section 12.B of the Franchise Agreement). We do not generally (a) own the premises from which franchisees operate the COOL BINZ Business or (b) lease any premises to franchisees to operate the COOL BINZ Business.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 34–35)
What This Means (2025 FDD)
Based on the 2025 Cool Binz Franchise Disclosure Document, Item 11 outlines Cool Binz's limited obligations regarding site selection. Cool Binz does not assist franchisees in selecting a business site or negotiating any lease or purchase agreements. They also do not help with conforming the site to local ordinances and codes or obtaining necessary permits.
However, Cool Binz does designate the territory for the business and requires that the site be located within that territory. The site must be at least 500 square feet with a lot size of 0.5 to 1.0 acre and adhere to Cool Binz's standards, including demographics, size, local traffic, and the presence of complementary businesses or competitors. Cool Binz must approve the site, and they will use commercially reasonable efforts to approve a suggested site within 30 days, provided it meets their minimum specifications.
It's important to note that franchisees are responsible for finding a suitable site. Failure to find a site and commence operations within eight months of signing the Franchise Agreement may result in termination of the agreement. Cool Binz generally does not own or lease premises to franchisees.