What conditions must be met for a Cool Binz franchisee to sell equipment to another franchisee?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee covenants that Franchisee will not transfer title to the Equipment except in one of these two ways:
- a. Sell the Equipment to another COOL BINZ Franchisee in good standing under its franchise agreement at a mutually acceptable price. CBI has first right of refusal to purchase the Equipment and must approve any transaction. If CBI financed any portion of the purchase price of the Equipment, the transferee will pay the proceeds to CBI if there is any outstanding balance under the Promissory Note for the Equipment prior to transfer of the Equipment. At the time of transfer Franchisee's account with CBI must be current and the purchasing Franchisee may not have any pending default under any agreement with CBI.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, a franchisee can sell equipment to another Cool Binz franchisee under specific conditions. First, the purchasing franchisee must be in good standing under their franchise agreement. Cool Binz also retains the first right of refusal to purchase the equipment themselves and must approve any transaction between franchisees.
If Cool Binz financed any portion of the equipment's original purchase price, the franchisee selling the equipment must ensure that the proceeds from the sale are used to pay off any outstanding balance under the Promissory Note for the equipment before the transfer can occur. Additionally, the selling franchisee's account with Cool Binz must be current at the time of the transfer.
These conditions ensure that Cool Binz maintains control over its proprietary equipment and protects its financial interests. They also help to ensure that equipment is transferred only to franchisees who are in good standing and financially capable of operating the business. Prospective franchisees should carefully consider these conditions and discuss any concerns with Cool Binz before entering into a franchise agreement.