What happens if a Cool Binz franchisee provides services that have not been authorized?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
THE FRANCHISEE MAY SELL**
You must offer and provide only and all of the Services that we periodically require for COOL BINZ franchisees in the manner that we prescribe, and you may only provide the Services that we have authorized. You may not market or perform any other services, except the Services, without our express, prior written approval. There are no limits on our right to periodically change required and/or authorized services and service categories, and we may do so at our discretion. Other than the advertising and territorial restrictions (See Item 12), we do not restrict the types of customers that you may service through your COOL BINZ Business. You may not provide unauthorized products of services for sale through your COOL BINZ Business. We will provide you with guidelines regarding pricing, staffing requirements and hours of operation, but you are responsible for developing your own workplace standards. As stated above, participation in the NORA programs is optional.
ITEM 17: RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION
This table lists certain important provisions of the franchise and related agreements. You should read these provisions in the agreements attached to this Disclosure Document. THE FRANCHISE RELATIONSHIP
| Provisions | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| with any of your customers or former customers, within: (i) the | |||
| Territory; |
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 53)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, franchisees must only offer and provide services that Cool Binz periodically requires and has authorized. Franchisees are prohibited from marketing or performing any other services without express prior written approval from Cool Binz. Cool Binz retains the right to periodically change required and/or authorized services at its discretion.
Specifically, the unauthorized use of equipment is considered a breach of the Franchise Agreement, the Promissory Note, and the Equipment Usage agreement. The equipment can only be used in connection with Cool Binz authorized services.
This restriction ensures uniformity and quality control across the Cool Binz franchise system. It also protects the brand's reputation by preventing franchisees from offering services that do not meet Cool Binz's standards. A prospective franchisee should carefully review the list of authorized services and understand the process for requesting approval to offer new or different services.