What is a Cool Binz franchisee required to do if any party claims an interest in the equipment?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
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 on the Equipment covering loss, damage, theft, vandalism and casualty; (v) maintain the Equipment per the manufacturer's maintenance, repair and replacement instructions; (vi) maintain in place any notices, labels or other indicia provided by CBI to indicate that the Equipment is subject to this Agreement; (vii) operate the Business as required under the Franchise Agreement; and (viii) notify CBI when any party claims any interest in the Equipment.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, a franchisee must notify Cool Binz if any party claims any interest in the equipment. This requirement is part of the franchisee's covenants with Cool Binz.
This notification requirement ensures that Cool Binz is aware of any potential disputes or claims related to the equipment used by the franchisee. This allows Cool Binz to protect its interests in the equipment, especially if Cool Binz has a security interest in the equipment due to financing provided to the franchisee.
By requiring franchisees to provide notice of any claims, Cool Binz aims to maintain control over its brand and protect its assets. This also helps Cool Binz ensure that franchisees are operating in compliance with the franchise agreement and that any potential legal issues are addressed promptly.