If Cool Binz exercises its right of first refusal, how long does it have to complete the closing?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
If we do not exercise our right of first refusal, you may complete the sale to the purchaser on the exact terms of the offer, subject to our approval of the transfer as provided in Section 10.B above. If the sale is not completed within 60 days after the expiration of the right of first refusal, or if there is a material change in the terms of the sale (which you agree promptly to communicate to us), we will have an additional right of first refusal during the 30-day period following either the expiration of the 60-day period or notice to us of the material change(s) in the terms of the sale, either on the terms originally offered or the modified terms, at our option.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
The 2025 Cool Binz Franchise Disclosure Document does not specify a timeframe for Cool Binz to complete the closing if it exercises its right of first refusal. However, it does state that if Cool Binz does not exercise its right of first refusal, the franchisee has 60 days to complete the sale to the purchaser. If the sale is not completed within those 60 days, Cool Binz has an additional 30-day period to exercise its right of first refusal.
Since the FDD does not explicitly state the closing timeframe for Cool Binz, prospective franchisees should clarify this point with the franchisor during their due diligence. Understanding the closing timeframe is crucial for financial planning and managing the sale process effectively.
It would be prudent for a potential Cool Binz franchisee to ask Cool Binz about the typical duration it takes for them to complete the closing process when they exercise their right of first refusal. This information will help the franchisee better understand the potential timeline and any associated implications.