Does BFG Holdco, Inc. guarantee Cool Binz's obligations to franchisees?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
seek to recover those amounts from the affiliate; however, the Company does not hold specific recourse or collateral rights in connection with the guarantee.
15. Retirement Plans
The Company sponsors a 401(k) plan for substantially all employees. The plan provides for the Company to make a required matching contribution. The Company may also make additional discretionary contributions to the plan. Contributions to the plan totaled $181, $212 and $244 for the years ended December 31, 2024, 2023, and 2022 respectively.
GUARANTEE OF PERFORMANCE
For value received, BFG Holdco, Inc., a Delaware corporation (the "Guarantor"), located at 3310 West End Avenue, Suite 620, Nashville, TN 37203, absolutely and unconditionally guarantees to assume the duties and obligations of Chem-Dry, Inc., NHance, Inc., 1-800 Water Damage International, LLC, Hoodz International, LLC, Ductz International, LLC, Patch Boys International, LLC, Plumberz International, LLC, Packoutz International, LLC, Safer Home Services International, LLC, Cool Binz International, LLC, Redbox+ International, LLC and JunkCo+ International, LLC, under their franchise registrations in each state where the franchises are registered, and under its Franchise Agreement identified in their Franchise Disclosure Documents issued March 28, 2025 (individually, each, a "Franchisor"), and as the Franchise Agreements may be entered into with all such obligations of the Franchisor under its franchise registrations and the Franchise Agreement are satisfied or until the liability of Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever occurs first.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 62)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, BFG Holdco, Inc. provides a guarantee of performance to Cool Binz franchisees. BFG Holdco, Inc., located in Nashville, TN, absolutely and unconditionally guarantees to assume the duties and obligations of Cool Binz International, LLC under their franchise registrations in each state where the franchises are registered. This guarantee extends to the Franchise Agreement identified in their Franchise Disclosure Documents issued March 28, 2025.
This guarantee remains in effect until all obligations of Cool Binz under its franchise registrations and the Franchise Agreement are satisfied or until the liability of Cool Binz to its franchisees under the Franchise Agreement has been completely discharged, whichever occurs first. BFG Holdco, Inc. will not be released from liability if a franchisee's claim against Cool Binz remains outstanding, and notice of acceptance is waived. However, BFG Holdco, Inc. does not waive receipt of notice of default on the part of Cool Binz.
In practical terms, this guarantee means that Cool Binz franchisees have an added layer of security. Should Cool Binz fail to meet its obligations under the Franchise Agreement, BFG Holdco, Inc. is legally bound to step in and fulfill those obligations. This reduces the risk for franchisees, as they have recourse to BFG Holdco, Inc., a separate entity, if Cool Binz defaults.
The guarantee is binding on BFG Holdco, Inc. and its successors and assigns, providing long-term assurance to Cool Binz franchisees. The execution of this guarantee occurred in Nashville, Tennessee, on March 21, 2025, with Janette Sims, Chief Financial Officer of BFG Holdco, Inc., signing on behalf of the guarantor.