How often does Cool Binz assess goodwill for impairment?

Based on the 2025 Franchise Disclosure Document, the excerpts provided do not specify how often Cool Binz assesses goodwill for impairment. However, the FDD emphasizes the importance of maintaining the goodwill associated with the Cool Binz brand. Franchisees must operate their businesses according to System Standards, as this is essential for preserving the goodwill of the Cool Binz marks and the franchise system as a whole. Franchisees are also required to respond to customer inquiries and complaints promptly to maintain positive customer relations and the goodwill of the system.

Several clauses in the franchise agreement aim to protect Cool Binz's goodwill. Franchisees must refrain from any actions that could harm the brand's reputation and must use their best efforts to promote and increase demand for Cool Binz services. They are also prohibited from engaging in any business practices that could be detrimental to the goodwill associated with the Cool Binz brand. Furthermore, the agreement outlines post-termination obligations, including the payment of amounts owed to Cool Binz, which could be tied to damages to goodwill resulting from a franchisee's default.

While the FDD excerpts highlight the significance of goodwill and the measures franchisees must take to protect it, they do not provide details on how Cool Binz, as a franchisor, assesses the value of its goodwill or how frequently such assessments are conducted. This type of information would typically be found in the franchisor's audited financial statements, which are included in the FDD but are not present in the provided excerpts. A prospective franchisee should review the full FDD, including the financial statements, and directly ask Cool Binz about their goodwill assessment practices to gain a comprehensive understanding.