For a Cool Binz franchise in Washington, is signing a general release a condition to renewal?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
of the terms and conditions of this Agreement through the date of its expiration, in addition to your compliance with the obligations described in Our Notice.
C. AGREEMENTS/RELEASES.
If you satisfy all of the other conditions to the awarding of a Renewal Term, you must sign the then-current franchise agreement and any ancillary agreements for COOL BINZ Businesses, which may include a different Royalty and/or or Territory. You and we further must sign a mutual general release, in a form satisfactory to us, of any and all claims against either of us and our respective shareholders, officers, directors, employees, agents, successors, and assigns. Such requirement to sign a general release is subject to change in our sole discretion.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, signing a mutual general release is generally required for renewal, but this requirement is subject to change at Cool Binz's discretion. Specifically, if a franchisee meets all other requirements for a renewal term, they must sign the then-current franchise agreement and any related agreements, which may include different royalty or territory terms. Both the franchisee and Cool Binz must sign a mutual general release, in a form satisfactory to Cool Binz, that releases all claims against each other, including their respective shareholders, officers, directors, employees, agents, successors, and assigns. However, Cool Binz retains the right to modify or waive this requirement.
For a Cool Binz franchisee in Washington, the Washington State Addenda to the Franchise Agreement indicates that the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, may supersede the franchise agreement, especially in areas of termination and renewal. This means that while Cool Binz's standard renewal terms include signing a general release, Washington law might provide additional protections or modify this requirement. Franchisees should be aware of these potential legal overrides and how they might affect their renewal process.
Given the interplay between Cool Binz's standard renewal requirements and Washington state law, prospective franchisees should seek legal counsel to fully understand their rights and obligations regarding renewal and general releases. They should also discuss with Cool Binz the specific conditions for renewal in Washington, including whether the general release requirement is currently enforced and how state law impacts this requirement. This due diligence will help ensure a smooth and legally compliant renewal process.