What maintenance standards is a Cool Binz franchisee required to adhere to for the equipment?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
- **7.
COVENANTS OF FRANCHISEE.** Franchisee covenants with CBI to (i) use and maintain the Equipment in a lawful manner and so as not to violate any law or regulation of the state, city or other political subdivisions in which Franchisee uses the Equipment; (ii) return, pay and file when due all taxes, fees and similar charges, including without limitation sales or use tax, and ad valorem and personal property taxes, imposed on the ownership, possession or use of the Equipment; (iii) keep the Equipment free and clear of all liens, security interests, claims and encumbrances except for those incurred through the initial financing of the Equipment with CBI or from a vendor approved by CBI; (iv) obtain and maintain property insurance on the Equipment covering loss, damage, theft, vandalism and casualty; (v) maintain the Equipment per the manufacturer's maintenance, repair and replacement instructions; (vi) maintain in place any notices, labels or other indicia provided by CBI to indicate that the Equipment is subject to this Agreement; (vii) operate the Business as required under the Franchise Agreement; and (viii) notify CBI when any party claims any interest in the Equipment.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, franchisees must maintain equipment according to several standards. Cool Binz franchisees covenant to use and maintain the equipment in a lawful manner, adhering to all laws and regulations. They are responsible for all taxes, fees, and charges associated with the equipment's ownership, possession, or use. The equipment must be kept free of liens and encumbrances, except for those incurred through initial financing with Cool Binz or an approved vendor.
Cool Binz requires franchisees to obtain and maintain property insurance on the equipment, covering loss, damage, theft, vandalism, and casualty. Franchisees must maintain the equipment per the manufacturer's maintenance, repair, and replacement instructions. They also need to keep in place any notices or labels provided by Cool Binz indicating that the equipment is subject to the Franchise Agreement.
Furthermore, franchisees must operate the business as required under the Franchise Agreement and notify Cool Binz when any party claims an interest in the equipment. These stipulations ensure that the Cool Binz equipment is well-maintained, legally compliant, and protected against potential risks, thereby upholding the standards and reputation of the Cool Binz franchise system.