What is the basis for the collectable amount of Cool Binz transfer fees?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
t letter assuring us that the transferee will meet its obligations under the Franchise Agreement, and reaffirming your guaranty of the Franchise Agreement;
8. you pay us:
- a. our then-current Transfer Fee, as published in our Operations Manual. The Transfer Fee is due upon our preparation of the required transfer documentation (consent to transfer and assignment agreement and/or preparation of transferee's fr
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the transfer fee is based on the then-current fee as published in their Operations Manual. This fee is due when Cool Binz prepares the necessary transfer documents, such as the consent to transfer and assignment agreement or the transferee's franchise agreement. Once these documents are prepared, the transfer fee becomes non-refundable.
In the event that a new Cool Binz franchisee is awarded their business by purchasing the assets of a previous franchisee, the new franchisee may have to pay Cool Binz the transfer fee if the predecessor has not already paid it, or if it was not negotiated in the purchase agreement. The purpose of this fee is to cover the expenses Cool Binz incurs during the transfer process.
Prospective Cool Binz franchisees should be aware of these transfer fee obligations, both when considering selling their franchise and when potentially buying an existing franchise from a previous owner. Understanding the timing and non-refundable nature of the fee is crucial for financial planning during a transfer.