What are the consequences if a Cool Binz franchisee's vehicle is repossessed and they do not have a vehicle meeting Cool Binz standards?

According to Cool Binz's 2025 Franchise Disclosure Document, if a franchisee fails to make payments on their vehicle, resulting in repossession, and does not have another vehicle that meets Cool Binz's standards to operate the business, Cool Binz has the right to terminate the Franchise Agreement. Cool Binz will provide a default notice, and the franchisee must cure the default to avoid termination.

System Standards for Cool Binz vehicles include the vehicle type, model, color, supplier, trademark representation, and appearance, with no rust or body damage. The Operations Manual contains these specifications. Vehicles must be maintained in good condition as defined by KELLY BLUE BOOK, meaning free of major defects, with only minor blemishes to the paint, body, and interior, and minimal rust. Franchisees must submit photos of all vehicles used in connection with the Cool Binz Business.

This means that maintaining a compliant vehicle is critical for a Cool Binz franchisee. Failure to do so can lead to the termination of the franchise agreement if the deficiency is not addressed after receiving notice from Cool Binz. A prospective franchisee should carefully review the vehicle standards outlined in the Operations Manual and ensure they have a plan to maintain or replace their vehicle to avoid potential default and termination of their franchise agreement.