What documentation regarding ownership must be submitted to Cool Binz before attending Initial Training or upon any change to the legal entity ownership?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
Before attending the Initial Training and/or upon any change to the legal entity ownership, you must submit to us a corporate resolution, or similar action, which states the name of the corporation or LLC, the legal names of all of the partners or shareholders, the percentage of ownership that each member controls, their place of residence and their agreement to be bound by the terms of the Franchise Agreement. In the case of multiple owners, you must submit a dispute resolution procedure acceptable to us in our sole discretion that states what you will do in the event that there is a conflict between any owners of the franchisee entity. In addition, at all times, the owners who have executed the Franchise Agreement must control 67% of the franchisee entity. The remaining owners must sign a written confidentiality and non-compete agreement in the form we prescribe.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 52–53)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, before attending Initial Training or when there is a change in legal entity ownership, franchisees must provide specific documentation to Cool Binz. This includes a corporate resolution or similar action that details the legal entity's name (corporation or LLC), the legal names of all partners or shareholders, the percentage of ownership each member controls, their place of residence, and their agreement to be bound by the terms of the Franchise Agreement.
In cases where there are multiple owners, Cool Binz requires the submission of a dispute resolution procedure that is acceptable to them. This procedure should outline how conflicts between the owners of the franchisee entity will be resolved. Furthermore, the owners who initially executed the Franchise Agreement must maintain control of at least 67% of the franchisee entity. Any remaining owners are required to sign a written confidentiality and non-compete agreement in the form prescribed by Cool Binz.
This requirement ensures that Cool Binz has a clear understanding of the ownership structure and that all owners are committed to the franchise agreement and operational standards. It also protects Cool Binz's interests by ensuring that a controlling percentage of ownership remains with the original franchisees and that all owners are bound by confidentiality and non-compete obligations. Prospective franchisees should carefully consider these requirements and ensure they can comply with them before entering into a franchise agreement with Cool Binz.