What happens if a Cool Binz franchisee fails to maintain the prescribed hours of operation?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to terminate this Agreement if any of the following defaults remains uncured after your receipt of a default notice from us, and if such defaults are not cured. Unless otherwise specified below, all defaults must be cured within thirty (30) days of our delivery of the default notice:
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- If you fail to maintain the prescribed months, days or hours of operation at the COOL BINZ Business;
In addition to our right to terminate this Agreement, and not in lieu of such right, or any other rights we may have against you, upon a failure to cure any default within the applicable time period (if any), we have the right, but not the obligation to,
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- Charge the Non-Compliance Fee;
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- Reduce the size of your Territory or permit other franchisees or Company Stores to provide the Services and Products within your Territory;
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- Enter upon the COOL BINZ Business premises and exercise complete authority with respect to the operation of the COOL BINZ Business until such time as we determine, in our sole discretion that the default has been cured, and you are otherwise in compliance with this Agreement. In the event we exercise the rights described in this Section, you must pay us a reasonable management fee and reimburse us for all reasonable costs and overhead, if any, incurred in connection with our operation of your COOL BINZ Business including, without limitation, costs of personnel for supervising and staffing the COOL BINZ Business and their travel and lodging accommodations, plus a 20% service charge. This fee is in addition to the payment of the Royalty and all other fees due under this Agreement during the time we exercise our rights under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, if a franchisee fails to maintain the prescribed hours of operation, Cool Binz has the right to terminate the Franchise Agreement if the failure remains uncured after the franchisee receives a default notice. Unless otherwise specified, the franchisee has thirty (30) days to cure the default after receiving the notice.
Maintaining prescribed hours of operation is a component of complying with System Standards. Cool Binz emphasizes that operating and maintaining the business according to System Standards is essential for preserving goodwill for the Cool Binz brand and all franchisees. System Standards may be modified and supplemented during the term of the agreement, and franchisees must comply with any changes immediately upon notice.
In addition to Cool Binz's right to terminate the agreement, upon failure to cure any default within the applicable time period, Cool Binz has the right to charge a Non-Compliance Fee, reduce the size of the franchisee's territory, or permit other franchisees or Company Stores to provide services within the franchisee's territory. Cool Binz can also enter the franchisee's business premises and exercise complete authority with respect to the operation of the business until Cool Binz determines the default has been cured. In this case, the franchisee must pay a reasonable management fee and reimburse Cool Binz for all reasonable costs and overhead, plus a 20% service charge. This fee is in addition to the Royalty and all other fees due under the agreement during the time Cool Binz exercises its rights under the agreement.