What is the cure period for a Cool Binz franchisee to obtain required insurance after receiving notice?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
You fail to acquire or continuously maintain the required minimum levels of insurance, fail to have us, BELFOR USA Group Inc. and/or BELFOR Franchise Group, LLC named as an additional insured, or fail to provide a current certificate of insurance to us as required in Section 7.C of this Agreement.
However, we will not exercise our right to terminate this Agreement if upon receipt of notice from us, you immediately cease operating the COOL BINZ Business and obtain such insurance within ten (10) days after written notice is delivered to you prior to resuming operation;
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, if a franchisee fails to acquire or maintain the required minimum levels of insurance, or fails to name Cool Binz and related entities as additional insureds, or fails to provide a current certificate of insurance, they have a 10-day cure period. Specifically, Cool Binz will not terminate the agreement if the franchisee immediately ceases operating the Cool Binz business and obtains the required insurance within 10 days after receiving written notice. The franchisee must obtain the insurance before resuming operations.
This means that a Cool Binz franchisee who is notified of an insurance deficiency has a limited time to rectify the situation to avoid termination of the franchise agreement. The franchisee must act quickly by stopping business operations and securing the necessary insurance coverage within the specified timeframe.
It is important for prospective Cool Binz franchisees to understand the insurance requirements and ensure they are always in compliance. Maintaining proper insurance is a critical aspect of the franchise agreement, and failure to do so can lead to serious consequences, including termination. Franchisees should also ensure that Cool Binz and related entities are named as additional insureds on their policies and that certificates of insurance are provided as required.