Besides franchise rights, what other performance obligations does Cool Binz have to franchisees?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
nt.
This Rider is being executed because (a) the offer or sale of the franchise for the COOL BINZ franchise you will operate under the Agreement was made in the State of Minnesota and you will operate the Franchise in the State of Minnesota and/or (b) you are a resident of the State of Minnesota.
Marks. The following language is added at the end of Section 4 of the Agreement:
Pursuant to Minnesota Stat. Sec. 80C.12, Subd. 1(g), we are required to protect any rights that you have to use our proprietary rights, including your right to use the trademarks, service marks, trade names, logotypes or other commercial symbols and indemnify the franchisee from any loss, costs, or expenses arising out of any claim, suite or demand regarding the use of the name.
Termination by Franchisor. The following language is added to Section 12.B of the Agreement:
With respect to franchises governed by Minnesota law, the franchisor will comply with Minn. Stat. Sec. 80C.14, Subds.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, Cool Binz has several performance obligations to its franchisees beyond granting the franchise rights. Cool Binz must protect the franchisee's right to use its proprietary rights, including trademarks and service marks. This includes indemnifying the franchisee from losses, costs, or expenses arising from claims related to the use of the Cool Binz name. This obligation is particularly emphasized for franchises governed by Minnesota law, as Cool Binz is required to comply with Minnesota Statutes regarding the protection of these proprietary rights.
For franchisees operating in Minnesota, Cool Binz must also adhere to specific regulations regarding termination and non-renewal of the franchise agreement. Except in certain specified cases, Cool Binz must provide a franchisee with 90 days' notice of termination (with 60 days to cure) and 180 days' notice of non-renewal. Additionally, Cool Binz cannot unreasonably withhold consent for the transfer of the franchise. These stipulations ensure that franchisees in Minnesota have additional protections under state law regarding the longevity and transferability of their franchise.
Furthermore, modifications to the Cool Binz Operations Manual cannot unreasonably affect a franchisee's obligations, including economic requirements. This provision ensures that Cool Binz cannot unilaterally impose changes that would significantly impact the franchisee's financial responsibilities or operational duties. This offers a degree of stability and predictability for franchisees, preventing the franchisor from making drastic changes that could jeopardize the franchisee's investment and business operations.