If a Cool Binz franchisee discontinues operations, what does the franchisee transfer to the franchisor?

According to Cool Binz's 2025 Franchise Disclosure Document, if a franchisee is terminating or not renewing their Franchise Agreement but owns another Cool Binz franchise, the equipment and the liability for any amount owing on the purchase price of the equipment will be transferred to that franchise upon written request. Cool Binz will repurchase the storage containers bins (the "Bins") in accordance with the table below. The percentages shown assume reasonable wear and tear and regular maintenance. If any components of the original Bins are missing, or there is damage or excessive wear and tear, Cool Binz reserves the right to make a corresponding adjustment to the repurchase price. The original Bins pricing under its Schedule will be reduced to the applicable percentage in effect based on the time elapsed after original purchase.

Cool Binz also has first right of refusal to purchase the equipment and must approve any transaction. If Cool Binz financed any portion of the purchase price of the equipment, the transferee will pay the proceeds to Cool Binz if there is any outstanding balance under the Promissory Note for the Equipment prior to transfer of the Equipment. At the time of transfer Franchisee's account with CBI must be current and the purchasing Franchisee may not have any pending default under any agreement with CBI.

This means that when discontinuing operations, a Cool Binz franchisee doesn't simply walk away. They must transfer equipment and related liabilities to another franchise they own, sell the equipment to another franchisee (subject to Cool Binz's approval and right of first refusal), or have Cool Binz repurchase the storage bins based on a depreciation schedule. This ensures that the Cool Binz system maintains control over its assets and standards, even when a franchisee exits the business.