When is the indemnification fee due 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 is due 'as incurred.' This means a Cool Binz franchisee will be required to pay this fee when the cost is incurred by the franchisor.
The amount of the indemnification fee is based on 'actual costs' and will vary depending on the circumstances. Cool Binz states that a franchisee must reimburse them if they are held liable for claims that directly or indirectly arise from the operation of the franchisee's Cool Binz business.
It's important to note that the obligation to indemnify Cool Binz survives the termination or expiration of the Franchise Agreement. This means even after the franchise agreement ends, a former franchisee could still be responsible for indemnification fees related to the operation of their Cool Binz business.