What consideration is given by the shareholders, partners, or members of a Cool Binz franchisee in exchange for the franchise grant?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
d the Initial Training.
Before attending the Initial Training and/or upon any change to the legal entity ownership, you must submit to us a corporate resolution, or similar action, which states the name of the corporation or LLC, the legal names of all of the partners or shareholders, the percentage of ownership that each member controls, their place of residence and their agreement to be bound by the terms of the Franchise Agreement. In the case of multiple owners, you must submit a dispute resolution procedure acceptable to us in our sole discretion that states what you will do in the event that there is a conflict between any owners of the franchisee entity. In addition, at all times, the owners who have executed the Franchise Agreement must control 67% of the franchisee entity. The remaining owners must sign a written confidentiality and non-compete agreement in the form we prescribe. All owners and their spouses are required to sign the personal Guaranty Agreement.
At the start of their employment, you must require, as consideration for employment, each of your Managing Owner, Designated Managers, sales and/or account management employees to sign non-disclosure and confidentiality agreements that we have specified or approved. Such agreements will prohibit disclosure, by the employee to any other person or legal entity, of any trade secrets, customer lists, or other information, knowledge, or know-how regarding the System or the operation of the COOL BINZ Business, which is deemed confidential and/or proprietary by us.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, shareholders, partners, and members of a Cool Binz franchisee provide several forms of consideration in exchange for the franchise grant. Firstly, they must submit a corporate resolution or similar action that includes the name of the business entity (corporation or LLC), the legal names of all partners or shareholders, the percentage of ownership each member controls, their place of residence, and their agreement to be bound by the terms of the Franchise Agreement. This ensures Cool Binz knows who the owners are and that they are committed to the franchise terms. In cases with multiple owners, a dispute resolution procedure acceptable to Cool Binz must be submitted, outlining how conflicts between owners will be handled.
Additionally, the owners who execute the Franchise Agreement must control at least 67% of the franchisee entity. This ensures that those most committed to the franchise are in control. The remaining owners must sign a written confidentiality and non-compete agreement in the form prescribed by Cool Binz. This protects Cool Binz's interests by preventing these owners from disclosing confidential information or competing with the franchise.
Furthermore, all general partners, members, and direct/indirect equity holders must execute an agreement personally guaranteeing the full payment and performance of the legal entity's obligations to Cool Binz. This personal guaranty ensures that the individuals behind the franchisee are personally liable for the franchise's financial and operational commitments. These measures collectively ensure that Cool Binz franchisees are committed, transparent, and accountable, protecting the Cool Binz brand and system.