What is the limitation on transfer fees that Cool Binz can collect in Washington?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
8. you pay us:
- a. our then-current Transfer Fee, as published in our Operations Manual. The Transfer Fee is due upon our preparation of the required transfer documentation (consent to transfer and assignment agreement and/or preparation of transferee's franchise agreement), and is non-refundable at such time;
- b. all Royalties for completed jobs up through the date of closing, fees, amounts owed under any promissory notes with us, Late Payment Fees, Late Report Fees, NSF Fees, Interest Fees, and all other fees or amounts owed to us, plus interest; and
- c. all commissions, broker fees or other similar expenses if: (i) you list the COOL BINZ Business with a broker, lead referral network or similar entity; or (ii) the transferee is referred to you or us by a broker, lead referral network or similar entity;
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- the transferee must successfully complete our Business Manager and Technical Operations Training program;
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- the transferee must assume and agree to be bound by all outstanding obligations to customers and clients of the COOL BINZ Business;
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
Based on the 2025 Cool Binz Franchise Disclosure Document, there is no specific limitation mentioned regarding transfer fees that Cool Binz can collect in Washington state. The FDD outlines the general conditions and fees associated with transferring a franchise, including the payment of a transfer fee.
The franchisee is required to pay Cool Binz's then-current transfer fee, as published in the Operations Manual. This fee is due upon the preparation of the required transfer documentation, such as the consent to transfer and assignment agreement or the preparation of the transferee's franchise agreement, and it is non-refundable once the documentation is prepared. Additionally, the franchisee must settle all outstanding royalties, fees, and amounts owed to Cool Binz, including late payment fees, late report fees, NSF fees, and interest fees, along with any applicable broker fees.
Prospective franchisees should be aware that the transfer process involves several conditions that must be met, including the transferee completing the Business Manager and Technical Operations Training program, assuming all outstanding obligations to customers, and signing a general release of claims against Cool Binz. The franchisor also retains the right to approve the material terms of the transfer and may require the transferee to purchase additional equipment or complete remodeling to comply with current system standards. Since there is no mention of specific state limitations, it is important for a prospective franchisee to consult the Operations Manual and clarify the current transfer fee and any potential limitations or regulations specific to Washington with the franchisor.