What is a Cool Binz franchisee authorizing CBI to file without an additional signature?

According to Cool Binz's 2025 Franchise Disclosure Document, a franchisee authorizes CBI (Cool Binz International) to file a financing statement regarding the equipment without needing an additional signature from the franchisee. This authorization is specifically related to the equipment purchased by the franchisee and financed by CBI.

This means that if a Cool Binz franchisee finances the purchase of equipment through CBI, the franchisee grants CBI the right to file a financing statement. A financing statement is a legal document filed with a government agency to give public notice of the lender's security interest in the equipment. This filing protects CBI's investment in the equipment by establishing their priority claim to it in case the franchisee defaults on their financing obligations.

For a prospective Cool Binz franchisee, this clause simplifies the financing process. Instead of requiring the franchisee to sign additional documents for the financing statement, the initial agreement provides CBI with the necessary authorization. However, it's crucial for the franchisee to understand that this agreement gives CBI a secured interest in the equipment, which could have implications if the franchisee faces financial difficulties or decides to sell the franchise.