What is the cure period allowed for Cool Binz franchisees to rectify deficient payments to Cool Binz, its affiliates, or its affiliates' franchisees?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to terminate this Agreement if any of the following defaults remains uncured after your receipt of a default notice from us, and if such defaults are not cured. Unless otherwise specified below, all defaults must be cured within thirty (30) days of our delivery of the default notice:
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- You fail to make payment of any amounts due to us, our affiliates, or our affiliates' franchisees, or funds are not available in your account for debiting when they are due, and such deficiency is not cured within five (5) days, or you do not record in the COOL BINZ Software funds paid to you for jobs completed within 48 hours of their receipt, or you default on any loan made to you by us or our preferred lender, if applicable, in connection with your COOL BINZ Business;
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, a franchisee has a limited time to correct payment defaults. Specifically, if a Cool Binz franchisee fails to make payments to Cool Binz, its affiliates, or its affiliates' franchisees, or if funds are unavailable for debiting when due, the franchisee has only five days to rectify the deficiency after receiving a default notice.
This short cure period highlights the importance of maintaining sufficient funds and adhering to payment schedules. Failure to cure the payment deficiency within the specified five-day period can lead to termination of the franchise agreement. This is a stricter timeline compared to other types of defaults, which generally allow for a 30-day cure period.
Prospective Cool Binz franchisees should be aware of this stringent requirement and ensure they have robust financial management systems in place to avoid late or missed payments. The quick turnaround time underscores the need for franchisees to prioritize their financial obligations to Cool Binz and its related entities to maintain compliance and avoid potential termination of their franchise agreement.