What is a Cool Binz franchisee required to do with payments erroneously made to them from a third party that are due to Cool Binz?

According to the 2025 Cool Binz Franchise Disclosure Document, a franchisee must immediately endorse and deliver to Cool Binz any payments due to Cool Binz from a third party that are erroneously made to the franchisee.

Failure to comply with this requirement can lead to a default under the Franchise Agreement. According to Item 23, Cool Binz has the right to terminate the agreement if the franchisee fails to immediately endorse and deliver such payments. The franchisee has no cure period for this specific default, meaning Cool Binz can terminate the agreement immediately.

This provision ensures that Cool Binz receives payments intended for them without delay. It also protects against potential commingling of funds or disputes over misdirected payments. Franchisees should have a system in place to identify and promptly forward any such payments to Cool Binz to avoid potential termination of their franchise agreement.