What does the indemnification fee cover for a Cool Binz franchise?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee (Note 1) | Amount | Due Date | Remarks (Note 1) |
|---|---|---|---|
| Indemnification | Actual costs, will vary under circumstances | As incurred | You must reimburse us if we are held liable for claims directly or indirectly arising out of your COOL BINZ Business’s operation. Your obligation to indemnify us will survive the termination or expiration of your Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 19–27)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the indemnification fee covers the costs Cool Binz incurs if they are held liable for claims that arise directly or indirectly from the operation of your Cool Binz business. The amount of this fee is based on actual costs and will vary depending on the circumstances.
This means that as a Cool Binz franchisee, you are responsible for reimbursing Cool Binz for any expenses they incur due to claims related to your business's operations. This could include legal fees, settlement costs, or other damages. The fee is due as these costs are incurred.
It's important to note that this obligation to indemnify Cool Binz survives the termination or expiration of your Franchise Agreement. Therefore, even after you are no longer a franchisee, you may still be responsible for covering costs associated with claims arising from your operation of the Cool Binz business. Prospective franchisees should carefully consider this potential liability and discuss it with a legal and financial advisor.