Is a Cool Binz franchisee required to cooperate with inspections of their Cool Binz Business?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
that we, or our affiliates, may use the pictures for publicity and other legal purposes without any remuneration to you in connection with the use of the pictures.
You must cooperate fully with us in any inspection of your COOL BINZ Business, and we must use our best efforts to not interfere with the operation of your COOL BINZ Business.
B. OUR RIGHT TO AUDIT.
We have the right at any time during business hours, and without prior notice to you, to inspect and audit, or cause to be inspected and audited, any and all financial statements, reports, income tax records, sales tax records, payroll records, software databases, and other records. You must cooperate fully with our representatives and independent accountants we hire to conduct any inspection or audit.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, franchisees are required to cooperate fully with inspections and audits of their Cool Binz business. Cool Binz has the right to perform on-site inspections during business hours at the franchisee's office site and any other locations where the Cool Binz business is operated. During these inspections, Cool Binz may participate in quality checks, interview employees, and review various business records, promotional materials, personnel files, and all components of the Cool Binz business.
The franchisee must allow Cool Binz or its designee to observe the business and take pictures for publicity and other legal purposes, which Cool Binz can use without compensating the franchisee. Cool Binz also has the right to inspect and audit financial statements, reports, income tax records, sales tax records, payroll records, software databases, and other records at any time during business hours without prior notice.
If an inspection or audit reveals an understatement of gross sales, Cool Binz can debit the franchisee's account for the royalty and brand marketing fees due on the understated amount, plus interest at a rate of 18% per annum (or the maximum rate permitted by law) and all late fees. This underscores the importance of maintaining accurate and transparent financial records as a Cool Binz franchisee.