What is the Cool Binz franchisee's responsibility regarding the inspection of each shipment of equipment?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
| Time Elapsed After Original Purchase | Percentage of Bins Equipment Price |
|---|---|
| Under 1 year | 65% |
| Under 2 Years | 50% |
| Under 3 Years | 35% |
| Under 4 Years | 20% |
| Under 5 Years | 15% |
| Over 5 Years | Offer After Inspection |
- 6. RETURN OF EQUIPMENT. Upon expiration or termination of the Franchise Agreement, Franchisee will cooperate with CBI to repurchase all or some of the Equipment pursuant to the terms in the Franchise Agreement, unless Franchisee has arranged for the sale of the Equipment to another COOL BINZ franchisee with the consent of CBI.
- 7. COVENANTS OF FRANCHISEE. 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;
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
Based on the 2025 Cool Binz Franchise Disclosure Document, the franchisee is responsible for maintaining the equipment according to the manufacturer's instructions. The franchisee must also notify Cool Binz if any party claims any interest in the equipment. Additionally, the franchisee must meet and maintain the highest safety standards applicable to the operation of the Cool Binz business and furnish Cool Binz with copies of all inspection reports and any violation or citation that indicates a failure to maintain federal, state, or local safety standards within two days of receipt.
Cool Binz franchisees must use and maintain the equipment in a lawful manner, adhering to all laws and regulations. They are responsible for all taxes, fees, and charges associated with the equipment, including sales, use, and property taxes. The equipment must be kept free of liens and encumbrances, except for those related to initial financing. Franchisees are also required to obtain and maintain property insurance covering loss, damage, theft, vandalism, and casualty.
These stipulations ensure that Cool Binz franchisees properly manage and protect the equipment essential for their business operations, while also adhering to legal and safety standards. By maintaining the equipment and providing necessary documentation, franchisees contribute to the overall integrity and reputation of the Cool Binz brand. While the FDD excerpt details the franchisee's responsibilities for maintaining and using the equipment, it does not specifically outline the inspection process for each equipment shipment. A prospective franchisee should ask Cool Binz about the specific procedures and standards for inspecting equipment upon arrival to ensure it meets the required specifications and is free from damage.