What expenses can Cool Binz collect transfer fees for?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event you were awarded your COOL BINZ Business as a result of your purchase of all or substantially all of the assets of the COOL BINZ Business owned by a previous franchisee in the Territory, you must pay us the following fees if they are not timely paid by your predecessor, or negotiated in your purchase agreement:
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- Our then-current Transfer Fee to defray expenses we incur in the transfer; and
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- Any and all outstanding Royalties, amounts owed for purchases from us, Late Payment Fees, Late Report Fees, Interest Fees, NSF Fees and any other fees owed, plus interest, as well as any applicable broker fees, whether incurred by you or by your predecessor franchisee.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the company can collect transfer fees from franchisees in specific situations. If a franchisee is selling their Cool Binz business to a new owner, Cool Binz charges a transfer fee to cover the expenses they incur during the transfer process. This fee is due when Cool Binz prepares the necessary transfer documents, such as the consent to transfer, assignment agreement, or the new franchisee's agreement. Once these documents are prepared, the transfer fee becomes non-refundable.
In the event that a new franchisee is taking over a Cool Binz business from a previous franchisee, the new franchisee might have to pay certain outstanding fees if the previous owner didn't pay them on time. These fees include the transfer fee itself, as well as any unpaid royalties, amounts owed for purchases from Cool Binz, late payment fees, late report fees, interest fees, NSF fees, and any other outstanding fees, including interest. Additionally, the new franchisee might be responsible for any broker fees that were incurred during the transfer, whether by the new franchisee or the previous one.
In summary, Cool Binz collects transfer fees to cover the administrative and legal costs associated with transferring a franchise to a new owner. Additionally, these fees ensure that any outstanding debts or obligations from the previous franchisee are settled, protecting Cool Binz's financial interests and maintaining the integrity of the franchise system.