Is a Cool Binz franchisee's responsibility limited to the minimum insurance coverage amounts specified by Cool Binz?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
nce. You shall maintain compliance with any state, county, local, or other municipal insurance requirements and any other insurance policies we may require.
The insurance levels listed above are the minimum we require you to maintain for the COOL BINZ Business. We may, periodically determine and modify the minimum insurance limits
and require different or additional kinds of insurance to reflect changes in insurance standards, normal business practices, higher court awards and other relevant circumstance. To gain adequate protection, you should discuss with your insurance agent and financial advisor to determine if your personal situation requires you to maintain coverage in excess of the minimums that we require. If any lease or Customer contract requires an insurance policy amount to be higher than the amounts we have listed above, you must obtain the highest amount for such policy.
All general liability insurance policies will name us, BELFOR Franchise Group, LLC, BELFOR USA Group Inc., and our designated affiliates, employees, officers and directors as additional insureds, and will contain no provision which in any way limits or reduces coverage for you if a claim is made by any one (1) or more of the Indemnified Parties, as defined in Section 14.C of this Agreement, and will extend to and provide indemnity for all obligations assumed by you and all items for which you are required to indemnify us, will be primary to and without right of contribution from any other insurance purchased by the Indemnified Parties, and will provide, by endorsement, that we receive at least 30 days' notice of any intent to cancel or materially alter any policy.
At least ten (10) days before attending Business Manager and Technical Operations Training, commencing the operation of the COOL BINZ Business, whenever a change is made to your policy, and before expiration of any insurance coverage, you must have your insurance provider send us a copy or certificate or other acceptable proof of such insurance.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, a franchisee's insurance responsibilities extend beyond simply maintaining the minimum coverage levels initially specified by Cool Binz. Cool Binz retains the right to modify these minimum insurance limits periodically to reflect changes in insurance standards, normal business practices, higher court awards, and other relevant circumstances. Franchisees are obligated to comply with these modifications within the specified timeframe outlined in a 30-day prior written notice.
Furthermore, franchisees should assess their personal situation with an insurance agent and financial advisor to determine if they require coverage exceeding the minimums required by Cool Binz. If any lease or customer contract mandates higher insurance policy amounts than Cool Binz's minimums, the franchisee must obtain the higher amount for such policy. This ensures adequate protection based on individual business needs and contractual obligations.
Failure to maintain the required insurance coverage or provide satisfactory evidence of coverage can result in Cool Binz obtaining insurance on the franchisee's behalf, with the franchisee responsible for all associated costs and premiums. Non-compliance with insurance requirements, including failing to name Cool Binz and related entities as additional insureds or failing to provide current certificates of insurance, can be grounds for termination of the Franchise Agreement, although Cool Binz may allow a 10-day cure period to obtain the necessary insurance before terminating the agreement.