How is 'disability' defined in the Cool Binz franchise agreement in relation to the franchisee's ability to operate the business?

According to Cool Binz's 2025 Franchise Disclosure Document, the franchise agreement defines 'disability' in specific terms related to a franchisee's operational capacity. Disability is defined as a condition that materially impairs the franchisee's ability to operate the Cool Binz business in accordance with the franchise agreement. This impairment must last for a period of thirty or more consecutive days, or for sixty or more days within a calendar year to be considered a disability under the agreement.

This definition is important because it triggers certain provisions within the franchise agreement. Specifically, in the event of the death or disability of the Designated General Manager, the franchise agreement allows for a temporary operation of the Cool Binz business by another qualified party. This could be another owner of the franchise, or the Designated General Manager's spouse, child, or parent. However, this temporary operation is contingent upon several conditions, including that the individual must qualify as a transferee, personally manage the business full-time, be approved by Cool Binz, complete the required training program, and sign an assignment and assumption of the Franchise Agreement.

If no qualified person is available or approved to temporarily operate the Cool Binz business, Cool Binz retains the right to appoint a representative or another franchisee to operate the business. This appointment would occur after providing notice to the executor of the deceased or disabled manager. This provision ensures the continued operation of the Cool Binz business and the maintenance of brand standards even in unforeseen circumstances.

For a prospective franchisee, this definition of disability and the related procedures provide a level of security and a plan of action in case of serious health issues. However, it also highlights the importance of having a qualified backup operator and understanding the conditions under which Cool Binz can intervene in the operation of the franchise.