How many days will a Cool Binz franchisee have to cure a default before the Franchise Agreement can be terminated?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
We can also terminate your Franchise Agreement if you fail to make payments
as agreed; however, before your Franchise Agreement can be terminated, you will receive a notice of default and have a ten-day period to cure the default. The Note shall survive termination of the Franchise Agreement. It is not our current practice or intent to sell, assign, or discount to a third party all or part of the financing arrangement.
Source: Item 10 — FINANCING (FDD pages 35–36)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, if a franchisee fails to make payments as agreed, Cool Binz can terminate the Franchise Agreement. However, Cool Binz must first provide a notice of default, and the franchisee will then have ten days to cure the default.
This ten-day cure period is a critical provision for franchisees. It means that if a payment is missed, the franchisee has a short window to rectify the situation before Cool Binz can take steps to terminate the agreement. Failing to cure the default within this timeframe could lead to the termination of the franchise and the loss of the business.
It is important to note that the promissory note associated with the financing will survive the termination of the Franchise Agreement. This means that even if the franchise is terminated, the franchisee is still obligated to repay any outstanding balance on the note. The note also requires the franchisee to waive certain legal rights, such as notice of non-payment and protest.