What does the Cool Binz Franchisee covenant regarding the use and maintenance of the equipment?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
| Time Elapsed After Original Purchase | Percentage of Bins Equipment Price |
|---|---|
| Under 1 year | 65% |
| Under 2 Years | 50% |
| Under 3 Years | 35% |
| Under 4 Years | 20% |
| Under 5 Years | 15% |
| Over 5 Years | Offer After Inspection |
- 6. RETURN OF EQUIPMENT. Upon expiration or termination of the Franchise Agreement, Franchisee will cooperate with CBI to repurchase all or some of the Equipment pursuant to the terms in the Franchise Agreement, unless Franchisee has arranged for the sale of the Equipment to another COOL BINZ franchisee with the consent of CBI.
- 7. COVENANTS OF FRANCHISEE. Franchisee covenants with CBI to (i) use and maintain the Equipment in a lawful manner and so as not to violate any law or regulation of the state, city or other political subdivisions in which Franchisee uses the Equipment; (ii) return, pay and file when due all taxes, fees and similar charges, including without limitation sales or use tax, and ad valorem and personal property taxes, imposed on the ownership, possession or use of the Equipment; (iii) keep the Equipment free and clear of all liens, security interests, claims and encumbrances except for those incurred through the initial financing of the Equipment with CBI or from a vendor approved by CBI; (iv) obtain and maintain property insurance o
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, franchisees have specific responsibilities regarding the equipment used in their business. Cool Binz franchisees must use and maintain the equipment in a lawful manner, adhering to all state, city, and local laws and regulations. This ensures that the equipment is operated safely and legally.
Cool Binz franchisees are also responsible for all taxes, fees, and charges associated with the equipment, including sales, use, ad valorem, and personal property taxes. They must keep the equipment free from any liens, security interests, claims, or encumbrances, except for those incurred through initial financing with Cool Binz or an approved vendor. Additionally, franchisees are required to obtain and maintain property insurance on the equipment to cover loss, damage, theft, vandalism, and casualty.
Furthermore, Cool Binz requires franchisees to maintain the equipment according to the manufacturer's instructions for maintenance, repair, and replacement. Franchisees must also keep in place any notices, labels, or other indicators provided by Cool Binz to show that the equipment is subject to the Franchise Agreement. They must operate the business as required under the Franchise Agreement and notify Cool Binz if any party claims an interest in the equipment. These covenants ensure that the equipment remains in good condition and is used in accordance with Cool Binz's standards and legal requirements.