What post-termination obligations must the transferor comply with to transfer a Cool Binz franchise?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
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- you must affirm and comply with your post-termination obligations, including, without limitation, such obligations set forth in Sections 6 or 13.
B. MARKS.
Upon the termination or expiration of this Agreement, you must:
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- strictly comply with, observe, and abide by all of the post-termination provisions of this Agreement, including those as set forth in Sections 5, 6 and 13.D of this Agreement;
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- neither directly nor indirectly represent to the public that any other business you may then own or operate, is or was operated as, or was in any way connected to, the System;
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- not hold yourself out or advertise in any context that you are a present franchisee or were a former franchisee of ours;
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- immediately refrain from engaging in any business relationship with any contacts with Customers or former Customers of the COOL BINZ Business, whether with respect to collection of accounts receivable, providing Services, or for any other purpose whatsoever;
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- assign any and all accounts receivable to us for collection, unless all Royalties and other payment obligations to us are paid in full. In connection with this assignment, you appoint us as attorney-in-fact to engage in these collection activities and you
specifically refrain from engaging in any of these collection activities. We must employ good faith efforts, including where appropriate in our sole and exclusive judgment the commencement of legal proceedings to collect the accounts receivable. We have no duty or obligation to you to accomplish the collection of such accounts receivable. We will remit to you any of these sums collected after first deducting all moneys owed to us and our costs of collection;
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- immediately cease operation under this Agreement and not operate or do business under any name or in any manner which might tend to give the general public the impression that you are operating a COOL BINZ Business, or any confusingly similar business;
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- take the action required to cancel all DBAs or equivalent registrations relating to your use of any Mark;
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- deliver to us, within seven (7) days, all electronic and hard copies of Customer Information;
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, a transferor must affirm and comply with their post-termination obligations as part of the transfer process. Specifically, they must adhere to the obligations outlined in Sections 6 or 13 of the franchise agreement. This means that before Cool Binz will approve a franchise transfer, the franchisee selling their business must agree to abide by all requirements regarding conduct after the franchise relationship ends.
These post-termination obligations, detailed in Section 13.D, include strict compliance with all post-termination provisions outlined in Sections 5, 6, and 13.D of the Franchise Agreement. The transferor cannot represent any other business they own or operate as connected to the Cool Binz system, nor can they advertise themselves as a current or former Cool Binz franchisee. They must also cease business relationships with customers or former customers of the Cool Binz business.
Furthermore, the transferor must assign all accounts receivable to Cool Binz for collection, provided that all royalties and other payment obligations to Cool Binz are fully paid. They must also cease operations under the agreement and avoid any business activities that might confuse the public into thinking they are still operating a Cool Binz business. The transferor is required to cancel all DBAs (Doing Business As) or equivalent registrations related to the use of any Cool Binz mark and deliver all electronic and hard copies of customer information to Cool Binz within seven days.