What is the definition of 'transfer' by a Cool Binz franchisee?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provisions | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| or any other lien is placed against you and not released or bonded within 30 days; (xx) you become insolvent; (xxi) you order or purchase supplies, signs, furnishings, fixtures, equipment or inventory from an unapproved supplier; (xxii) you misuse or make unauthorized use of any COOL BINZ /Required Software; (xxiii) you fail to comply with the anti-terrorism provision; (xxiv) you take for your own personal use any assets or property of the COOL BINZ Business; or (xxv) if there are insufficient funds in your bank account to cover a check or EFT payment 3 or more times within any 12-month period or you fail to achieve minimum sales for 3 consecutive months. These provisions are subject to state law. | |||
| i. | Franchisee's obligations on termination/no n-renewal | Section 13 | Upon termination or early expiration of the Franchise Agreement, your obligations include: (i) pay all amounts owed to us; (ii) de identify and otherwise stop using the Marks in any manner, including in business names and telephone listings; (iii) return all Confidential Information and customer lists to us; (iv) comply with post-term non-competition covenants; and (v) deliver proof of compliance. |
| j. | "Transfer" by franchisor | Section 10.A | No restriction on our right to assign. |
| k. | "Transfer" by franchisee – definition | Section 10.B | Includes transfer or assignment of the Franchise Agreement, the COOL BINZ Business or any part thereof, and change of your ownership in the franchisee entity and/or COOL BINZ Business. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 53–58)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, a transfer by a franchisee includes several scenarios. It encompasses the transfer or assignment of the Franchise Agreement itself. Additionally, it includes the transfer of the Cool Binz Business, or any part of it. Furthermore, a change in the franchisee's ownership structure or within the Cool Binz Business also constitutes a transfer.
This definition is important for prospective franchisees because it clarifies that any significant change in the control or ownership of the franchise requires franchisor approval. This is a common provision in franchise agreements, designed to ensure that the new operator meets the franchisor's standards and is capable of maintaining the brand's reputation and operational consistency.
Cool Binz requires that franchisees seek approval from them for any transfer. However, Cool Binz will not unreasonably withhold approval if the franchisee meets their conditions. This protects Cool Binz's interests while also providing a pathway for franchisees to exit the business if they choose to do so. Understanding these conditions is crucial for franchisees planning for future business transitions.