What must the Cool Binz franchisee acknowledge and agree to regarding the minimum insurance amounts required by Cool Binz?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
7. SYSTEM STANDARDS.
A. COMPLIANCE WITH SYSTEM STANDARDS.
You acknowledge and agree that the operation and maintenance of your COOL BINZ Business according to System Standards is essential to preserve the goodwill for the Marks and all COOL BINZ franchisees. Therefore, at all times during the term of this Agreement, you agree that the Managing Owner or, if applicable, the Designated General Manager, devote your full-time best efforts to operate and maintain your Business according to each and every System Standard, even if you believe that a System Standard is not in the System's or your franchise's best interests. System Standards may be periodically modified and supplemented during the term of this Agreement and you must comply with any such changes immediately upon notice to you. Furthermore, you must use your best efforts to assure that your employees and representatives conduct themselves, during business hours and/or whenever they are in a vehicle with a COOL BINZ logo, or a company uniform with a COOL BINZ patch, in a manner which is consistent with the professional and ethical image of the System.
You will offer and provide all of the Services that we periodically require for COOL BINZ franchisees, and in the manner we prescribe.
System Standards, to be specified and periodically amended in the Operations Manual or otherwise in writing, may include, without limitation, standards and specification regarding:
[Item 23: RECEIPTS]
You acknowledge that we have developed the System to offer and sell Services that will distinguish the COOL BINZ Business from other businesses that offer similar services valued at different prices and with less attention paid to service quality and customer service. You agree to offer Services and to operate the COOL BINZ Business in such a manner that emulates and enhances the image we intend for the System. You further acknowledge and agree that each aspect of the System is important not only to you but also to us and to other COOL BINZ franchisees in order to maintain the highest operating standards, achieve system-wide uniformity and increase the demand for the Services rendered by COOL BINZ franchisees. You agree to comply with the standards, specifications and requirements we set forth in order to uniformly convey the distinctive image of a COOL BINZ Business.
[Item 23: RECEIPTS]
B. MODIFICATION OF SYSTEM STANDARDS.
You acknowledge and agree that the System must continue to evolve to reflect changing market conditions and to meet new and changing consumer demands. As a consequence, changes, modifications, and variations to the Systems Standards may be required periodically to preserve and enhance the public image of the System and enhance the operational efficiency of all COOL BINZ franchisees.
You, therefore, agree that we may periodically, and upon reasonable notice to you, add to, modify, phase out, or change the System, including without limitation, the adoption and use of new or modified trademarks, uniforms, signs, vehicle types, telephone numbers and technologies, products, equipment, services, techniques, proprietary software, non-proprietary software, methodologies and sales strategies. You must promptly accept, implement, use, and display in the
operation of your COOL BINZ Business, all such additions, modifications, and changes at your expense.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, franchisees must acknowledge and agree that operating and maintaining their Cool Binz business according to the System Standards is essential for preserving the goodwill associated with the Cool Binz brand and all its franchisees. This includes adhering to the minimum insurance requirements set by Cool Binz. Franchisees must operate their business in accordance with these standards, even if they personally believe a standard isn't in their best interest or the franchise's best interest. Cool Binz may periodically modify and supplement these System Standards, and franchisees must comply with any such changes immediately upon notification.
The Cool Binz franchisee acknowledges that Cool Binz has developed a system to offer services that differentiate the Cool Binz business from competitors through service quality and customer service. Franchisees agree to operate their Cool Binz business in a manner that enhances the image Cool Binz intends for the system. Each aspect of the system is important to the franchisee, Cool Binz, and other franchisees to maintain operating standards, achieve uniformity, and increase demand for Cool Binz services.
Cool Binz may periodically add to, modify, phase out, or change the System Standards, including insurance requirements, with reasonable notice to the franchisee. The franchisee is responsible for promptly accepting, implementing, and using all such additions, modifications, and changes at their own expense. The franchisee must also ensure their employees and representatives maintain a professional and ethical image consistent with the Cool Binz system, especially when in company vehicles or uniforms.