What is the consequence if a Cool Binz business telephone is disconnected and not reinstalled?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
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- notify the telephone company and all telephone directory publishers and Internet directory listings (including Google, Yahoo! and others) of the termination or expiration of your right to use any listing, telephone, telecopy, or other numbers and any telephone directory listings associated with any Mark, and authorize the transfer of these numbers and directory listings to us or, at our direction, instruct the telephone company to forward all calls made to your telephone number to numbers we specify.
If you fail to do so, we can take whatever action is necessary, on your behalf and consistent with the telephone and other listing agreement attached to this Agreement as Exhibit C, to affect these events;
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- agree to cooperate with us to effectuate any change in telephone numbers or other transfers of our property to us, including the signing of any forms, authorizations or other documents necessary;
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, if a franchisee's right to use any telephone number associated with the Cool Binz brand is terminated or expires, they must notify the telephone company, directory publishers, and internet directory listings of the termination or expiration. The franchisee must also authorize the transfer of these numbers and directory listings to Cool Binz, or instruct the phone company to forward all calls to a number Cool Binz specifies. If the franchisee fails to take these actions, Cool Binz can take the necessary steps on the franchisee's behalf to affect these events. The franchisee must also cooperate with Cool Binz to effect any change in telephone numbers or other transfers of property, including signing necessary documents. These obligations are in place upon termination or expiration of the franchise agreement.
This requirement ensures that Cool Binz maintains control over its brand identity and customer communications even after a franchise agreement ends. By controlling the phone numbers and listings, Cool Binz can redirect customer inquiries to other franchisees or to its corporate operations, preserving business opportunities. This is a fairly standard practice in franchising, as franchisors need to protect their brand and customer relationships.
The franchisee bears the responsibility of informing relevant parties about the termination or expiration of their right to use the phone number and listings. They must also facilitate the transfer of these assets to Cool Binz. Failure to comply with these requirements allows Cool Binz to take action on the franchisee's behalf, potentially incurring costs that the franchisee may ultimately be responsible for. Franchisees should ensure they understand these obligations and have a plan in place to comply with them upon termination or expiration of the franchise agreement.
Prospective Cool Binz franchisees should be aware of these post-termination obligations and factor them into their business planning. They should also clarify with Cool Binz the specific procedures for transferring phone numbers and listings to ensure a smooth transition and avoid any potential disputes or additional costs.