What constitutes substantial compliance with the Cool Binz Franchise Agreement for renewal purposes?

According to the 2025 Cool Binz Franchise Disclosure Document, substantial compliance with the provisions of the Franchise Agreement, including the timely payment of all fees and royalties, is required for a franchisee to be eligible for a renewal term. If a Cool Binz franchisee meets this condition upon the expiration of the initial agreement, they may continue their business for one additional term of ten years.

To be awarded a renewal term, the franchisee must also adhere to additional requirements. These include signing the then-current franchise agreement and any related ancillary agreements, which may involve different royalty terms or territory specifications. Additionally, both Cool Binz and the franchisee must sign a mutual general release, in a form satisfactory to Cool Binz, of any and all claims against each other. Cool Binz may also require the franchisee to upgrade and remodel the Cool Binz Business at their own expense to conform to the current Operations Manual as a condition of receiving the Renewal Term. The franchisee must also provide proof that they have the right to operate the Cool Binz Business at the Office Site for the Renewal Term.

Cool Binz retains the right to either grant a renewal, grant a renewal conditioned on correcting deficiencies, or deny a renewal if substantial compliance has not been maintained during the term of the agreement. If Cool Binz elects not to award a renewal, they will provide a notice describing the reasons for their decision. The franchisee's right to a renewal is contingent upon continued compliance with all terms and conditions of the agreement through the expiration date, as well as compliance with any obligations outlined in Cool Binz's notice.