Does the Cool Binz franchise agreement require proceedings to be conducted on an individual basis, rather than a class-wide basis?

According to the 2025 Cool Binz Franchise Disclosure Document, the franchise agreement specifies that all proceedings related to the agreement or the sale of the Cool Binz business will be conducted on an individual basis, not a class-wide basis. This means a franchisee cannot participate in a class action lawsuit against Cool Binz. Additionally, the agreement states that any proceeding between the franchisee, their owners, and Cool Binz or its affiliates cannot be consolidated with any other proceeding between Cool Binz and any other third party.

This requirement prevents franchisees from joining together in a single legal action against Cool Binz, which could limit their legal options and increase their individual costs if a dispute arises. It also ensures that Cool Binz will only have to deal with legal claims on a case-by-case basis, rather than facing larger, consolidated lawsuits.

Many franchise agreements contain similar clauses requiring individual arbitration or legal proceedings. Prospective franchisees should carefully consider the implications of waiving their right to participate in class actions, as it may affect their ability to seek redress in the event of a dispute with the franchisor. Franchisees may want to consult with an attorney to fully understand the legal ramifications of this provision.