Who must the insurance policies for a Cool Binz franchise protect?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
he future.
All general liability insurance policies will name us, BELFOR Franchise Group, LLC, BELFOR USA Group Inc., and our designated affiliates, employees, officers and directors (the "Indemnified Parties") as additional insureds, and will contain no provision which in any way limits or reduces coverage for you if a claim is made by any one or more of the Indemnified Parties, and will extend to and provide indemnity for all obligations assumed by you and all items for which you are required to indemnify us, will be primary to and without right of contribution from any other insurance purchased by the Indemnified Parties, and will provide, by endorsement, that we receive at least 30 days' notice of any intent to cancel or materially alter any policy.
At least ten (10) days before attending Training, commencing the operation of the COOL BINZ Business, whenever a change is made to your policy, and before expiration of any insurance coverage, you must have your insurance provider send us a copy or certificate or other acceptable proof of such insurance.
Approval of Alternative Suppliers
In the event you wish to purchase an unapproved item, including Portable Equipment, inventory, and/or acquire approved items from an unapproved supplier, you must provide us a proof of the materials you wish to order to us and a written request for approval. We will notify you in writing of our approval or disapproval within ten days of receipt of the materials and your written request. If you do not receive approval within ten days, you should consider the materials disapproved. All materials must meet the quality of our current suppliers, and correctly bear the Marks. Approval of a supplier may be conditioned on requirements relating to product quality, production and delivery capabilities, ability to meet our supply commitments and financial stability. Standards and specifications are updated periodically at our sole determination and are made available to you in our Manuals, other publications, and on our web site. You must reimburse us our actual costs and expenses if you request that we approve an alternative supplier, regardless of if we subsequently approve your request.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the insurance policies a franchisee obtains must protect Cool Binz International, LLC, BELFOR Franchise Group, LLC, and BELFOR USA Group Inc. This is achieved by naming these entities as additional insureds on the franchisee's general liability insurance policies.
This requirement means that Cool Binz and its related entities are protected from financial loss if a claim arises from the franchisee's business operations. If a customer or other third party sues a Cool Binz franchisee for negligence, for example, the insurance policy would cover not only the franchisee's legal costs and any settlement or judgment, but also those of the additional insureds. This is a common practice in franchising, as it shields the franchisor from liability for the actions of its franchisees.
Furthermore, the policies must contain a waiver of subrogation endorsement, preventing the insurance company from pursuing Cool Binz for claims. The franchisee is also obligated to indemnify Cool Binz and its affiliates (the Indemnified Parties) against any losses or liabilities arising from the operation of the Cool Binz Business, reinforcing the importance of adequate insurance coverage. The franchisee must provide Cool Binz with copies of insurance claims or cancellations within 24 hours and allow Cool Binz to obtain insurance on the franchisee's behalf if the franchisee fails to maintain the required coverage, with the franchisee bearing the costs.