What is the grace period for a Cool Binz franchisee to obtain insurance after receiving a notice of non-compliance?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
You fail to acquire or continuously maintain the required minimum levels of insurance, fail to have us, BELFOR USA Group Inc. and/or BELFOR Franchise Group, LLC named as an additional insured, or fail to provide a current certificate of insurance to us as required in Section 7.C of this Agreement.
However, we will not exercise our right to terminate this Agreement if upon receipt of notice from us, you immediately cease operating the COOL BINZ Business and obtain such insurance within ten (10) days after written notice is delivered to you prior to resuming operation;
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, a franchisee has a 10-day grace period to obtain the required insurance after receiving a written notice of non-compliance from Cool Binz. During this period, the franchisee must cease operating the Cool Binz business until the insurance is secured.
This stipulation is important because failure to maintain the required insurance coverage is grounds for Cool Binz to terminate the franchise agreement. However, Cool Binz offers this short grace period to allow the franchisee to rectify the situation and continue operating, provided they immediately stop business operations until the insurance is in place.
It is also important to note that Cool Binz can obtain insurance on behalf of the franchisee if the franchisee fails to provide satisfactory evidence of coverage and premium payments. However, the franchisee is responsible for fully cooperating with Cool Binz in obtaining such insurance, signing all required forms, allowing inspections, and paying all associated costs and premiums on demand. This does not absolve the franchisee of their indemnification obligations outlined in the agreement.