Is the Designated Manager of a Cool Binz franchise required to have an ownership interest?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
You must at all times faithfully, honestly, and diligently perform your obligations under this Agreement. Except as stated herein, you must designate at least one managing owner (the "Managing Owner") who will be our primary individual contact with the COOL BINZ Business and who we will approve in our sole discretion. A Managing Owner may, in our sole discretion, serve as the Managing Owner of more than one COOL BINZ Business that is owned by you; provided, however, that we may, in our sole discretion, require you to designate a person who will serve as the primary individual contact for this COOL BINZ Business (the "Designated Manager"). We must approve of the Designated Manager in writing, which we may grant in our sole discretion. The Managing Owner and, if applicable, the Designated Manager, must successfully complete our JumpStart and Initial Training Programs as described in and required by the Franchise Agreement. The Designated Manager is not required to have an ownership interest in the COOL BINZ Business. The Managing Owner or, if applicable, the Designated Manager must continuously exert her/his full-time best efforts to manage, promote and enhance the COOL BINZ Business, and such other COOL BINZ Businesses as we permit in our sole discretion. Without our prior written permission, the Managing Owner and, if applicable, the Designated Manager, must not engage in any other business or activity that conflicts with their obligations to operate the COOL BINZ Business on a full-time, year round basis. In the case of
multiple owners, the owner with day-to-day responsibility and authority to run the COOL BINZ Business and with whom we will communicate shall be identified on the signature line as the first Managing Owner.
Before commencing operation of the COOL BINZ Business, you must employ at least one person who has completed the Initial Training. At all times during the term of the Franchise Agreement, you must have employed at the COOL BINZ Business a person who has completed the Initial Training.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, a Designated Manager is not required to have an ownership interest in the Cool Binz Business. The franchisee must designate at least one Managing Owner, who will be Cool Binz's primary contact. However, Cool Binz may require the franchisee to designate a Designated Manager as the primary individual contact for the business.
The FDD stipulates that the Managing Owner and, if applicable, the Designated Manager, must successfully complete Cool Binz's JumpStart and Initial Training Programs. The Managing Owner or Designated Manager must continuously exert their full-time best efforts to manage, promote, and enhance the Cool Binz Business. They also cannot engage in any other business or activity that conflicts with their obligations to operate the Cool Binz Business on a full-time, year-round basis without prior written permission from Cool Binz.
In cases where there are multiple owners, the owner with day-to-day responsibility and authority to run the Cool Binz Business will be identified as the first Managing Owner. Before commencing operations, the franchisee must employ at least one person who has completed the Initial Training, and this requirement must be maintained throughout the term of the Franchise Agreement.