Will a Cool Binz franchisee be reimbursed for costs associated with requesting approval for unapproved items, even if the request is not approved?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event you wish to purchase an unapproved item, including inventory, and/or acquire approved items from an unapproved supplier, you must provide us a written request for approval, including a proof of the materials you wish to order. We will notify you in writing of our approval or disapproval within ten (10) days of receipt of the materials and your written request. We have no obligation to approve any particular products, service or supplier. If you do not receive approval within ten (10) days, you should consider the materials disapproved. All products and materials must meet the quality of our current suppliers, and correctly bear the Marks. Standards and specifications are periodically modified to meet changing market conditions and are published in our Operations Manual and on our web site. You must reimburse us our reasonable costs, regardless of if we subsequently approve your request.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, a franchisee is responsible for reimbursing Cool Binz for reasonable costs incurred when requesting approval for unapproved items, regardless of whether the request is ultimately approved. Specifically, if a franchisee wishes to purchase an unapproved item, including inventory, or acquire approved items from an unapproved supplier, they must submit a written request for approval with proof of the materials. Cool Binz will then notify the franchisee of their decision within ten days.
Cool Binz has no obligation to approve any particular product, service, or supplier. If approval is not received within ten days, the franchisee should consider the request disapproved. All products and materials must meet the quality standards of Cool Binz's current suppliers and correctly display the brand's marks. These standards are periodically updated and available on the Cool Binz intranet and in the Operations Manual.
The key takeaway is that a Cool Binz franchisee bears the financial risk of seeking approval for new items or suppliers. Even if Cool Binz rejects the request, the franchisee must still cover Cool Binz's associated costs. This policy encourages franchisees to carefully consider their requests and ensure they align with Cool Binz's standards before submitting them, as well as potentially discouraging the franchisee from seeking alternative suppliers.