What is Cool Binz's exclusive right regarding National or Regional Accounts (NORAs)?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the exclusive right to negotiate and enter into agreements or approve forms of agreement to provide services to National or Regional Account ("NORA") customers. The term NORA includes any customer which on its own behalf or through agents, licensees, or other third parties owns, manages, controls or otherwise has responsibility for a business in more than one (1) location, including but not limited to national insurance companies, third-party administrators, and other similar organizations, for the benefit of the System, and regardless of the aggregate contract amount of the services to be performed. Any dispute as to whether a particular customer is a NORA shall be determined by us in our sole discretion and our determination shall be final and binding. Following the execution of a contract with or the acceptance of a bid by a NORA customer which contemplates the provision of services to one (1) or more NORA customers who are located in your Territory, we may, if you are qualified to perform the services and conditioned upon your substantial compliance with the terms of the Agreement and any other applicable agreements, provide you the opportunity to perform such services pursuant to the terms and conditions of the NORA contract or on such terms and conditions as we, at our sole discretion, determine are appropriate. You agree to provide services to all NORA customer referrals within your Territory. You further agree to provide all services in strict adherence to the COOL BINZ performance and process standards and all service guidelines and performance standards of the NORA. You may be required to enter into a service agreement to participate in certain NORA programs.
If you are not able or not willing to provide services to a NORA customer in conformity with the terms and conditions of the NORA contract, or fail to make an election within the time we specify after being offered the opportunity, we have the right, exercisable in our sole discretion, to (i) provide, directly or through any affiliate or other franchisee or Managing Operator, services to the NORA customer; and/or (ii) contract with another party to provide such services to the NORA customer. In either event, neither you nor the Business shall be entitled to any proceeds from the provision of Services provided to the customer of a NORA.
Source: Item 12 — TERRITORY (FDD pages 45–49)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, Cool Binz retains the exclusive right to negotiate and enter into agreements, or approve agreement forms, for providing services to National or Regional Account (NORA) customers. A NORA customer is defined as any entity that, directly or through agents, owns, manages, or controls a business in more than one location. This includes national insurance companies and third-party administrators. Cool Binz has the sole discretion to determine if a customer qualifies as a NORA, and this decision is final.
If a NORA customer requires services in a franchisee's territory, Cool Binz may offer the franchisee the opportunity to perform these services, provided the franchisee is qualified and in substantial compliance with the Franchise Agreement. The franchisee must adhere to Cool Binz's performance standards and the NORA customer's service guidelines. Participation in certain NORA programs may require the franchisee to enter into a service agreement. The franchisee is obligated to provide services to all NORA customer referrals within their territory.
However, if a franchisee is unable or unwilling to provide services according to the NORA contract terms, Cool Binz reserves the right to provide the services directly, through an affiliate, another franchisee, or a third party. In such cases, the original franchisee will not be entitled to any proceeds from the services provided to the NORA customer. This arrangement ensures that Cool Binz maintains control over NORA relationships and can guarantee consistent service delivery to these important clients, even if it means bypassing a local franchisee.