When are the costs and attorneys' fees due for a Cool Binz franchise?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee (Note 1) | Amount | Due Date | Remarks (Note 1) |
|---|---|---|---|
| Indemnification | Actual costs, will vary under circumstances | As incurred | You must reimburse us if we are held liable for claims directly or indirectly arising out of your COOL BINZ Business’s operation. Your obligation to indemnify us will survive the termination or expiration of your Franchise Agreement. |
| Costs and | Actual costs, will vary | As incurred | See Note 7. |
| Attorneys’ Fees | under circumstances |
Source: Item 6 — OTHER FEES (FDD pages 19–27)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, franchisees are responsible for covering costs and attorneys' fees incurred by Cool Binz under specific circumstances. These costs and fees are not fixed amounts but rather "actual costs" that will vary depending on the situation.
The key factor determining when these payments are due is the phrase "as incurred." This means that Cool Binz will bill the franchisee for these expenses as they arise. For example, if Cool Binz faces a claim due to the franchisee's business operations and incurs legal costs defending against that claim, the franchisee will be required to reimburse Cool Binz for those costs at that time. Similarly, if Cool Binz has to take legal action to enforce the franchise agreement due to a franchisee's breach, the franchisee will be responsible for Cool Binz's attorney's fees as they are billed.
It's important for prospective Cool Binz franchisees to understand that these costs can be unpredictable and potentially substantial, as they depend on unforeseen events and legal proceedings. Franchisees should factor this potential financial burden into their business planning and ensure they have adequate resources to cover such expenses if they arise. Furthermore, the obligation to indemnify Cool Binz survives the termination or expiration of the Franchise Agreement.