If a Cool Binz franchise agreement is transferred, when is the royalty due for all completed jobs?

According to Cool Binz's 2025 Franchise Disclosure Document, if a franchisee transfers their franchise agreement to a new owner, the royalty payment for all completed jobs must be paid either on the day of closing or on the effective termination date of the agreement. This means that as a Cool Binz franchisee, you must ensure that all outstanding royalties are settled when transferring ownership to avoid any potential legal or financial repercussions.

This requirement ensures that Cool Binz receives all royalties owed up to the point of transfer. It also protects the brand's revenue stream and maintains financial accountability during ownership transitions. The specific timing—either the closing date or the termination date—provides some flexibility but makes it clear that the royalty payment is a prerequisite for finalizing the transfer.

For a prospective Cool Binz franchisee, this highlights the importance of maintaining accurate financial records and understanding the terms of the franchise agreement regarding transfers. It also emphasizes the need to plan for this payment when considering selling the franchise, as it could impact the proceeds from the sale. Failing to meet this obligation could delay or even prevent the transfer of the franchise.

Cool Binz also requires payment of a transfer fee upon preparation of the required transfer documentation. The transfer fee is non-refundable once the documentation is prepared. The franchisee is also responsible for all commissions, broker fees, or other similar expenses if the Cool Binz business is listed with a broker, lead referral network, or similar entity, or if the transferee is referred to the franchisee or Cool Binz by a broker, lead referral network, or similar entity.