Does Cool Binz assume liability for agreements, representations, or warranties made by the franchisee that are not expressly authorized under the Franchise Agreement?

According to Cool Binz's 2025 Franchise Disclosure Document, Cool Binz does not assume liability for unauthorized agreements, representations, or warranties made by its franchisees. The FDD states that Cool Binz will not be held liable for any agreements, representations, or warranties made by the franchisee that are not expressly authorized within the Franchise Agreement. Additionally, Cool Binz is not liable for damages to any person or property that arise from the franchisee's operation of the Cool Binz business.

This provision clarifies the relationship between Cool Binz and its franchisees, establishing them as independent entities. Franchisees cannot make agreements or incur debts on behalf of Cool Binz unless specifically authorized in the Franchise Agreement. This protects Cool Binz from potential liabilities arising from the actions of its franchisees.

Prospective franchisees should understand that they are solely responsible for their actions and representations made during the operation of their Cool Binz franchise. It is crucial for franchisees to adhere strictly to the terms outlined in the Franchise Agreement and avoid making any unauthorized claims or promises to customers or other parties. Failure to do so could result in the franchisee being held liable for any resulting damages or legal issues.