For how long can a Cool Binz franchisee be without a Designated General Manager before it constitutes a default?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
to cover a check or EFT payment to us three (3) or more times within any 12-month period or you fail to achieve minimum sales for three (3) consecutive months.
C. TERMINATION IF NOT CURED.
We have the right to terminate this Agreement if any of the following defaults remains uncured after your receipt of a default notice from us, and if such defaults are not cured.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, a franchisee's failure to employ a Designated General Manager for two consecutive months, if they are required to have one, constitutes a default under the franchise agreement. Cool Binz will issue a default notice, and the franchisee must rectify the situation within thirty days of receiving the notice to avoid termination of the agreement.
This requirement underscores the importance Cool Binz places on having qualified management in place. The Designated General Manager is considered a key role for the successful operation of the franchise. Franchisees should be aware of this requirement and have contingency plans in place to ensure they can quickly fill the position if the Designated General Manager leaves.
Cool Binz also stipulates that if a Designated General Manager terminates their employment, the franchisee must designate a successor within ten days for Cool Binz's written approval. This successor must then attend the next available Business Manager and Technical Operations Training. Failure to promptly replace a departing Designated General Manager and ensure their successor is adequately trained can lead to a default and potential termination of the franchise agreement.