How does Cool Binz handle uncollectible amounts related to accounts receivable?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the termination or expiration of this Agreement, you must:
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- immediately refrain from engaging in any business relationship with any contacts with Customers or former Customers of the COOL BINZ Business, whether with respect to collection of accounts receivable, providing Services, or for any other purpose whatsoever;
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- assign any and all accounts receivable to us for collection, unless all Royalties and other payment obligations to us are paid in full. In connection with this assignment, you appoint us as attorney-in-fact to engage in these collection activities and you
specifically refrain from engaging in any of these collection activities. We must employ good faith efforts, including where appropriate in our sole and exclusive judgment the commencement of legal proceedings to collect the accounts receivable. We have no duty or obligation to you to accomplish the collection of such accounts receivable. We will remit to you any of these sums collected after first deducting all moneys owed to us and our costs of collection;
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, Cool Binz addresses accounts receivable by requiring the franchisee to assign any and all accounts receivable to Cool Binz for collection, provided that all royalties and other payment obligations to Cool Binz are not paid in full.
Cool Binz is appointed as the attorney-in-fact to engage in collection activities, and the franchisee must refrain from engaging in these collection activities. Cool Binz must employ good faith efforts, including the commencement of legal proceedings, to collect the accounts receivable, but Cool Binz has no duty or obligation to the franchisee to accomplish the collection of such accounts receivable.
Cool Binz will remit to the franchisee any sums collected after deducting all monies owed to Cool Binz and Cool Binz's costs of collection. This means that if a franchisee has outstanding debts to Cool Binz, those debts and the costs Cool Binz incurs to collect the receivables will be deducted from any collected amounts before any money is returned to the franchisee.