What does the Cool Binz franchisee covenant regarding the transfer of title to the equipment?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
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 is restricted in their ability to transfer title to the equipment used in the business. The franchisee covenants that they will not transfer title to the equipment except under specific conditions.
Specifically, a Cool Binz franchisee can sell the equipment to another Cool Binz franchisee in good standing, provided they come to a mutually acceptable price. Cool Binz also has the first right of refusal to purchase the equipment themselves and must approve any transaction. If Cool Binz financed any portion of the equipment, the proceeds must first go to satisfying any outstanding balance under the promissory note before the transfer. The franchisee's account with Cool Binz must be current, and the purchasing franchisee cannot have any pending defaults under any agreement with Cool Binz.
Another scenario where transfer is allowed is if the franchisee is terminating or not renewing their Franchise Agreement but owns another Cool Binz franchise. In this case, the equipment and the liability for any amount owing on the equipment's purchase price will be transferred to that other franchise upon written request. Cool Binz will also repurchase the storage containers (bins) according to a schedule, with the repurchase price adjusted for wear and tear and maintenance. Missing components or excessive damage can further reduce the repurchase price based on the time elapsed after the original purchase.