What California laws are recognized in the Cool Binz Franchise Disclosure Document?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
OUR WEBSITE WWW.COOL-BINZ.COM HAS NOT BEEN REVIEWED OR APPROVED BY THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION, ANY COMPLAINTS CONCERNING THE CONTENT OF THE WEBSITE MAY BE DIRECTED TO THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION AT WWW.DFPI.CA.GOV.
The maximum interest rate allowed by law in California is 10% annually.
The franchise agreement contains a liquidated damages clause. Under California Civil Code Section 1671, certain liquidated damages clauses are unenforceable.
No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, several California laws are referenced. The document notes that the maximum interest rate allowed by law in California is 10% annually. This is a general usury law that limits the amount of interest that can be charged on a debt.
The FDD also mentions California Civil Code Section 1671, which pertains to liquidated damages clauses. Under this section, certain liquidated damages clauses are unenforceable. This is relevant to the franchise agreement, which contains a liquidated damages clause. Liquidated damages are a pre-set amount of money that one party agrees to pay the other in the event of a breach of contract.
Additionally, the Cool Binz FDD states that no statement, questionnaire, or acknowledgement signed by a franchisee can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by the franchisor. This provision is designed to protect franchisees from inadvertently giving up their legal rights. The document also mentions that the Cool Binz website has not been reviewed or approved by the California Department of Financial Protection and Innovation, and any complaints about the website's content may be directed to that department.