What is the Cool Binz franchisee acknowledging regarding restrictions and limitations on the resale of the equipment?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5. TRANSFER OF OWNERSHIP. Franchisee acknowledges that the Franchise Agreement imposes restrictions and limitations on the resale of the Equipment. Franchisee acknowledges that the Equipment may not be sold, leased, or rented to or used by any other party, except under the conditions stated below, as provided in the Franchise Agreement, or as permitted in writing by CBI. The Equipment is proprietary and authorized for use only within the COOL BINZ franchise network. Franchisee covenants that Franchisee will not transfer title to the Equipment except in one of these two ways:
- a. Sell the Equipment to another COOL BINZ Franchisee in good standing under its franchise agreement at a mutually acceptable price. CBI has first right of refusal to purchase the Equipment and must approve any transaction. If CBI financed any portion of the purchase price of the Equipment, the transferee will pay the proceeds to CBI if there is any outstanding balance under the Promissory Note for the Equipment prior to transfer of the Equipment. At the time of transfer Franchisee's account with CBI must be current and the purchasing Franchisee may not have any pending default under any agreement with CBI.
- b. If Franchisee is terminating or not renewing the Franchise Agreement and Franchisee owns another COOL BINZ franchise, the Equipment (and the liability for any amount owing on the purchase price of the Equipment) will be transferred to that franchise upon written request.
- c. CBI will repurchase the storage containers bins (the "Bins") in accordance with the table below. The percentages shown assume reasonable wear and tear and regular maintenance. If any components of the original Bins are missing, or there is damage or excessive wear and tear, CBI reserves the right to make a corresponding adjustment to the repurchase price. The original Bins pricing under its Schedule will be reduced to the applicable percentage in effect based on the time elapsed after original purchase.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, a franchisee acknowledges that the Franchise Agreement places restrictions and limitations on reselling the equipment. The equipment cannot be sold, leased, or rented to or used by another party unless specific conditions are met, as outlined in the Franchise Agreement or with written permission from CBI. The equipment remains proprietary and is authorized for use only within the Cool Binz franchise network.
A Cool Binz franchisee can only transfer title to the equipment in one of two ways. First, they can sell the equipment to another Cool Binz franchisee in good standing under their franchise agreement at a mutually acceptable price, but Cool Binz has the first right of refusal and must approve the transaction. If Cool Binz financed any portion of the purchase, the proceeds must first go to Cool Binz to cover any outstanding balance. The franchisee's account with Cool Binz must be current, and the purchasing franchisee cannot have any pending defaults. Second, if the franchisee is terminating or not renewing their agreement and owns another Cool Binz franchise, the equipment and associated liabilities can be transferred to that franchise upon written request.
Cool Binz will repurchase the storage containers (bins) based on a schedule that considers reasonable wear and tear and regular maintenance. If any components are missing or there is excessive damage, Cool Binz reserves the right to adjust the repurchase price accordingly. The original pricing will be reduced based on the time elapsed since the original purchase, according to a specified percentage.