What conditions might Cool Binz place on the approval of an alternative supplier?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event you wish to purchase an unapproved item, including Portable Equipment, inventory, and/or acquire approved items from an unapproved supplier, you must provide us a proof of the materials you wish to order to us and a written request for approval. We will notify you in writing of our approval or disapproval within ten days of receipt of the materials and your written request. If you do not receive approval within ten days, you should consider the materials disapproved. All materials must meet the quality of our current suppliers, and correctly bear the Marks. Approval of a supplier may be conditioned on requirements relating to product quality, production and delivery capabilities, ability to meet our supply commitments and financial stability. Standards and specifications are updated periodically at our sole determination and are made available to you in our Manuals, other publications, and on our web site. You must reimburse us our actual costs and expenses if you request that we approve an alternative supplier, regardless of if we subsequently approve your request.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 31–34)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, if a franchisee wishes to purchase unapproved items or acquire approved items from an unapproved supplier, they must provide Cool Binz with proof of the materials and a written request for approval. Cool Binz will then notify the franchisee in writing of their decision within ten days. If no approval is received within this timeframe, the request should be considered disapproved.
Cool Binz stipulates that all materials from alternative suppliers must meet the quality standards of their current suppliers and correctly display the Cool Binz Marks. The approval of an alternative supplier may be contingent on several factors, including product quality, production and delivery capabilities, the supplier's ability to meet Cool Binz's supply commitments, and the supplier's financial stability. These standards and specifications are subject to periodic updates at Cool Binz's discretion and are detailed in their manuals, publications, and website.
Furthermore, the franchisee is responsible for reimbursing Cool Binz for all actual costs and expenses incurred during the alternative supplier approval process, regardless of whether the request is ultimately approved. This financial responsibility adds a layer of risk for franchisees seeking alternative suppliers, as they must bear the costs of the evaluation process even if the supplier is not approved. This policy ensures that Cool Binz maintains control over its supply chain and brand standards while potentially generating revenue from franchisee requests for alternative suppliers.
This requirement to seek approval and potentially bear the costs of evaluation aligns with common franchise industry practices, where franchisors often maintain strict control over their supply chains to ensure quality and consistency. However, the financial burden placed on franchisees for seeking alternative suppliers is a factor that prospective franchisees should carefully consider.