What does a Cool Binz franchisee agree to regarding court entry for the benefit of CBI?

According to Cool Binz's 2025 Franchise Disclosure Document, a franchisee must notify Cool Binz International, LLC (CBI) in writing within five days of the commencement of any action, suit, or proceeding. This includes the issuance of any order, suit, or proceeding of any court, agency, or other government entity. The notification requirement extends to the receipt of any notice or citation that may adversely affect the operation or financial condition of the franchisee or the Cool Binz Business.

This requirement ensures that Cool Binz is promptly informed of any legal or regulatory issues that could impact the franchisee's business or its financial stability. By mandating timely notification, Cool Binz can take appropriate steps to protect its interests, provide support to the franchisee, and ensure compliance with legal and regulatory requirements. This also allows Cool Binz to assess the potential impact on the overall franchise system and take proactive measures to mitigate any risks.

For a prospective Cool Binz franchisee, this means being diligent in monitoring and reporting any legal or regulatory issues that arise. Failure to comply with this notification requirement could result in penalties or other adverse consequences under the Franchise Agreement. Therefore, it is crucial for franchisees to establish internal procedures to ensure timely reporting of any relevant actions, suits, proceedings, notices, or citations to Cool Binz.