In the Cool Binz franchise agreement, what does the Managing Owner do?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
ten (10) years (the "Initial Term") commencing on the date of this Agreement.
You must at all times faithfully, honestly, and diligently perform your obligations under this Agreement. Except as stated herein, you must designate at least one managing owner (the "Managing Owner") who will be our primary individual contact with the COOL BINZ Business and who we will approve in our sole discretion. A Managing Owner may, in our sole discretion, serve as the Managing Owner of more than one COOL BINZ Business that is owned by you; provided, however, that we may, in our sole discretion, require you to designate a person who will serve as the primary individual contact for this COOL BINZ Business (the "Designated Manager"). We must approve of the Designated Manager in writing, which we may grant in our sole discretion. The Managing Owner and, if applicable, the Designated Manager, must successfully complete our JumpStart and Initial Training Programs as described in and required by the Franchise Agreement. The Designated Manager is not required to have an ownership interest in the COOL BINZ Business. The Managing Owner or, if applicable, the Designated Manager must continuously exert her/his full-time best efforts to manage, promote and enhance the COOL BINZ Business, and such other COOL BINZ Businesses as we permit in our sole discretion. Without our prior written permission, the Managing Owner and, if applicable, the Designated Manager, must not engage in any other business or activity that conflicts with their obligations to operate the COOL BINZ Business on a full-time, year round basis. In the case of
multiple owners, the owner with day-to-day responsibility and authority to run the COOL BINZ Business and with whom we will communicate shall be identified on the signature line as the first Managing Owner.
Before commencing operation of the COOL BINZ Business, you must employ at least one person who has completed the Initial Training. At all times during the term of the Franchise Agreement, you must have employed at the COOL BINZ Business a person who has completed the Initial Training.
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.
At the start of their employment, you must require, as consideration for employment, each of your Managing Owner, Designated Managers, sales and/or account management employees to sign non-disclosure and confidentiality agreements that we have specified or approved. Such agreements will prohibit disclosure, by the employee to any other person or legal entity, of any trade secrets, customer lists, or other information, knowledge, or know-how regarding the System or the operation of the COOL BINZ Business, which is deemed confidential and/or proprietary by us. Such employee non-disclosure and confidentiality agreements will, to the fullest extent permitted by applicable law, prevent employees from servicing or soliciting any of the customers of your Business, except in their capacities as employees of the COOL BINZ Business. We may require you to send us a copy of such agreements once fully signed.
D. TERRITORY.
Within the Territory, you have the right to (1) advertise, market, and provide any Customer with the Services, except as otherwise described in this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the Managing Owner is the primary contact between the franchisee and Cool Binz. The Managing Owner must be approved by Cool Binz and may manage more than one Cool Binz business, subject to Cool Binz's discretion. If Cool Binz requires it, the franchisee must designate a separate Designated Manager, who Cool Binz must also approve. Both the Managing Owner and Designated Manager must complete Cool Binz's JumpStart and Initial Training Programs. The Designated Manager is not required to have an ownership stake in the Cool Binz business. The Managing Owner or Designated Manager must dedicate their full-time efforts to managing, promoting, and enhancing the Cool Binz business, and cannot engage in conflicting business activities without Cool Binz's permission. In cases with multiple owners, the Managing Owner is the one with day-to-day responsibility and authority. Before starting operations, the franchisee must employ someone who has completed the Initial Training and must maintain this employment throughout the franchise term. The Managing Owner or Designated General Manager must attend the Cool Binz convention every year it is offered, or pay a $1,000 non-attendance fee, and must also attend periodic refresher training courses and conferences.
The Managing Owner plays a crucial role in ensuring the Cool Binz business operates according to the franchisor's standards. They must devote their full-time efforts to the business and adhere to System Standards, even if they disagree with them. System Standards can be modified and supplemented during the franchise term, and the Managing Owner must comply with these changes immediately upon notification. They are also responsible for ensuring that employees and representatives maintain a professional and ethical image consistent with the Cool Binz brand.
For a prospective Cool Binz franchisee, understanding the Managing Owner's responsibilities is essential. It highlights the importance of having a dedicated and qualified individual in this role. The franchisee should carefully consider who they designate as the Managing Owner, as this person will be the primary point of contact with Cool Binz and will be responsible for ensuring compliance with all franchise requirements. The franchisee should also be aware of the training requirements and the ongoing need to attend conventions and refresher courses. The non-compete obligations are also important to consider, as the Managing Owner cannot engage in any conflicting business activities without Cool Binz's prior written permission.