What is the consequence if a Cool Binz franchisee fails to provide a current certificate of insurance?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
You fail to acquire or continuously maintain the required minimum levels of insurance, fail to have us, BELFOR USA Group Inc. and/or BELFOR Franchise Group, LLC named as an additional insured, or fail to provide a current certificate of insurance to us as required in Section 7.C of this Agreement.
However, we will not exercise our right to terminate this Agreement if upon receipt of notice from us, you immediately cease operating the COOL BINZ Business and obtain such insurance within ten (10) days after written notice is delivered to you prior to resuming operation;
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 fails to provide a current certificate of insurance as required, Cool Binz has the right to terminate the Franchise Agreement. However, Cool Binz will not exercise its right to terminate the agreement if, upon receiving notice from them, the franchisee immediately ceases operating the Cool Binz business and obtains the required insurance within ten days after written notice is delivered, before resuming operations.
Cool Binz requires franchisees to provide a copy or certificate of insurance at least ten days before attending Business Manager and Technical Operations Training, before starting business operations, whenever a change is made to the policy, and before any insurance coverage expires. If a franchisee does not maintain the required insurance coverage or provide satisfactory evidence of coverage and premium payments, Cool Binz may, at its sole option, obtain the necessary insurance on the franchisee's behalf, in addition to any other rights and remedies available to them.
If Cool Binz obtains insurance on behalf of the franchisee, the franchisee must fully cooperate with Cool Binz, promptly sign all required forms, allow any necessary inspections of the Cool Binz business, and pay, on demand, all costs and premiums incurred by Cool Binz in obtaining the insurance. The franchisee's obligation to maintain insurance coverage, or Cool Binz's maintenance of insurance on the franchisee's behalf, does not reduce or absolve the franchisee of any indemnification obligations outlined in the agreement. Franchisees must promptly report all material claims, or potential claims, against them, any Indemnified Party, or Cool Binz to both the insurer and Cool Binz.
Franchisees cannot commence their Cool Binz business until they have provided certificates of insurance or other acceptable proof of all required insurances. They also cannot reduce policy limits, restrict coverage, cancel, or otherwise alter or amend any insurance policy without Cool Binz's written consent. Franchisees must provide Cool Binz with copies of any insurance claims or insurance cancellations within 24 hours and have a 24-hour opportunity to cure any lapses in insurance coverage. No insurance policy can be subject to cancellation, termination, non-renewal, or material modification without at least 30 days prior written notice from the insurance carrier to Cool Binz. Cool Binz has the right to increase or modify the minimum insurance requirements with 30 days prior written notice, and franchisees must comply with any such modification within the specified time.