What is a Cool Binz franchisee required to maintain in place on 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, franchisees must maintain any notices, labels, or other indicators provided by Cool Binz to show that the equipment is subject to the Franchise Agreement. This requirement ensures that all equipment is properly identified as belonging to the Cool Binz system and helps maintain brand consistency.
This provision is important for several reasons. First, it helps Cool Binz protect its proprietary rights in the equipment. Second, it helps to ensure that customers are aware that the equipment is being used by a Cool Binz franchisee. Third, it helps to maintain the uniformity of the Cool Binz system.
Failure to comply with this requirement could result in a breach of the Franchise Agreement. Therefore, it is important for Cool Binz franchisees to carefully review the Franchise Agreement and any other documents provided by Cool Binz to ensure that they are in compliance with this requirement.