What is the Cool Binz franchisee's responsibility regarding the reporting of any gross defects or deficiencies 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)
Based on the 2025 Cool Binz Franchise Disclosure Document, franchisees are responsible for maintaining the equipment according to the manufacturer's instructions. While the FDD does not explicitly state the franchisee's responsibility to report gross defects or deficiencies in the equipment, it does state that the franchisee must notify Cool Binz when any party claims any interest in the equipment.
Additionally, Cool Binz franchisees must maintain their vehicles, used in connection with the business, in good condition, meaning free of any major defects, with only minor blemishes to the paint, body, and interior. The franchisee must also submit photos of all vehicles used in connection with the Cool Binz Business in the manner and format prescribed by Cool Binz.
To fully understand the reporting requirements for equipment defects, a prospective Cool Binz franchisee should ask the franchisor for clarification on the specific procedures and standards for reporting any equipment issues, as well as the potential consequences of failing to report such issues in a timely manner.