What must a Cool Binz franchisee do if they erroneously receive payments due to Cool Binz from a third party?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
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- You fail to immediately endorse and deliver to us any payments due to us from any third party that is erroneously made to you;
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, if a franchisee mistakenly receives payments that are owed to Cool Binz from a third party, the franchisee is obligated to immediately endorse and deliver those payments to Cool Binz.
This requirement is part of the franchise agreement, and failure to comply can lead to a default notice. If the franchisee fails to cure the default within thirty days of receiving the notice, Cool Binz has the right to terminate the agreement. This underscores the importance of maintaining accurate financial records and promptly addressing any misdirected payments to avoid potential penalties or termination of the franchise agreement.
This stipulation ensures that Cool Binz receives all payments due to them in a timely manner, and it prevents franchisees from inappropriately holding funds that belong to the franchisor. Franchisees should establish clear procedures for handling payments and immediately report any errors to Cool Binz to maintain compliance with the franchise agreement.