What criteria is used to evaluate a proposed Cool Binz transferee?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
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- you, your principals, and the transferee (if we have a prior relationship with the transferee) have signed a general release, in a form satisfactory to us, of any and all claims against us and our shareholders, officers, directors, employees, and agents (such requirement to sign a general release is subject to change in our sole discretion);
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- we have approved the material terms and conditions of the transfer, the form of purchase and sale agreement, and determined that the price and terms of payment will not adversely affect the transferee's operation of the COOL BINZ Business;
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- in the event of an approved transfer to a wholly owned corporation or limited liability company, we will require you to own and control at least 67% of the issued and outstanding capital stock or other ownership interest;
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- you must have attended Business Manager and Technical Operations Training and your business must be open in order to transfer the COOL BINZ Business;
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- you must affirm and comply with your post-termination obligations, including, without limitation, such obligations set forth in Sections 6 or 13.
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- the transferee must obtain, within the time limits set by us, and maintain thereafter, all permits and licenses required for the operation of the COOL BINZ Business;
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- to the extent required by the terms of any leases or other agreements, the lessors or other parties must have consented to the proposed transfer;
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- the transfer must be made in compliance with any laws that apply to the transfer, including state and federal laws governing the offer and sale of franchises; and
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- if required by us, in our sole discretion, transferee must purchase all or a portion of the Initial Package, the Initial Promotional Package, new or refurbished equipment, inventory, new vehicles/vehicle wraps, and complete remodeling, refurbishing, renovation or upgrades required by Franchisor, etc. to ensure the COOL BINZ Business is in compliance with our current System Standards and in wellmaintained condition.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, several criteria must be met for a transfer of a Cool Binz franchise to be approved. Both the current franchisee and the potential transferee must meet specific requirements. The current franchisee, along with their principals and the transferee (if Cool Binz has a prior relationship with them), must sign a general release of all claims against Cool Binz. The franchisor must also approve the material terms and conditions of the transfer, including the purchase and sale agreement, ensuring that the price and payment terms do not negatively impact the transferee's ability to operate the Cool Binz business.
If the transfer is to a corporation or LLC, the current franchisee must retain at least 67% ownership and control. The current franchisee must have completed the Business Manager and Technical Operations Training and have an open business to be eligible for transfer. They must also affirm and comply with their post-termination obligations. The transferee is responsible for obtaining and maintaining all necessary permits and licenses. Consent from lessors or other relevant parties must be secured if required by existing leases or agreements.
The transfer must comply with all applicable laws, including state and federal franchise laws. Cool Binz, at its discretion, may require the transferee to purchase all or part of the Initial Package, Initial Promotional Package, new or refurbished equipment, inventory, new vehicles/vehicle wraps, and complete any required remodeling or upgrades to ensure the Cool Binz business meets current system standards and is well-maintained. These criteria ensure that any transfer maintains the integrity and standards of the Cool Binz franchise system.
These requirements are typical in franchising to protect the brand and ensure the continued success of the franchise system. Prospective franchisees should carefully review these conditions and discuss any concerns with Cool Binz before proceeding with a transfer.