Does the Cool Binz Disclosure Acknowledgement Questionnaire ask if the franchisee understands that the success or failure of their franchise will depend on many factors?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
| Do you understand the success or failure of your franchise will depend on many factors | | including your skills and abilities, competition, interest rates, the economy, inflation, labor | | and supply costs, lease terms and the marketplace? | | Yes or No |
EXHIBIT H TO THE DISCLOSURE DOCUMENT
DISCLOSURE ACKNOWLEDGEMENT QUESTIONNAIRE
NOTICE FOR PROSPECTIVE FRANCHISEES WHO RESIDE IN, OR WHO INTEND TO OPERATE THE FRANCHISED BUSINESS IN THE STATES OF CALIFORNIA, MARYLAND, AND WASHINGTON: DO NOT COMPLETE THIS QUESTIONNAIRE OR TO RESPOND TO ANY OF THE QUESTIONS CONTAINED IN THIS QUESTIONNAIRE.
As you know, Cool Binz International, LLC and you are preparing to enter into a Franchise Agreement for the operation of a COOL BINZ franchise. Please review each of the following questions carefully and provide honest responses to each question.
No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the Disclosure Acknowledgement Questionnaire does include a question asking franchisees if they understand that the success or failure of their franchise will depend on many factors. These factors include the franchisee's skills and abilities, competition, interest rates, the economy, inflation, labor and supply costs, lease terms, and the marketplace. The franchisee must answer "Yes or No" to this question. This questionnaire is identified as Exhibit H to the Disclosure Document. However, prospective franchisees who reside in, or who intend to operate the franchised business in the states of California, Maryland, and Washington, are instructed not to complete the questionnaire or respond to any of the questions contained within it.
This acknowledgement is a standard practice in franchising, intended to ensure that franchisees recognize the multifaceted nature of business success. By acknowledging these factors, franchisees demonstrate they understand that their own efforts, as well as external market conditions, will significantly impact their franchise's performance. It also serves to protect Cool Binz from potential future claims that franchisees were not aware of the risks involved.
However, the FDD also states that no statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Prospective Cool Binz franchisees should carefully consider all these factors and seek professional advice to assess their ability to manage these risks. Franchisees in California, Maryland, and Washington should be aware of the implications of not completing the questionnaire and how it might affect their legal rights and obligations.