What are the potential consequences if a Cool Binz franchisee is in default of the franchise agreement?

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. Unless otherwise specified below, all defaults must be cured within thirty (30) days of our delivery of the default notice:

• 1. You fail to make payment of any amounts due to us, our affiliates, or our affiliates' franchisees, or funds are not available in your account for debiting when they are due, and such deficiency is not cured within five (5) days, or you do not record in the COOL BINZ Software funds paid to you for jobs completed within 48 hours of their receipt, or you default on any loan made to you by us or our preferred lender, if applicable, in connection with your COOL BINZ Business;
• 1. You fail to have in your employ for a period of two (2) consecutive months a Designated General Manager, if you are required to have one.
• 1. You fail, within 15 days after notification of non-compliance by federal, state or local government authorities to comply with any law or regulation applicable to the COOL BINZ Business;
• 1. You fail to comply with any part or condition, warranty, or certification requirement in this Agreement, the COOL BINZ owners' intranet website, Operations Manual and/or other COOL BINZ confidential materials;
• 1. You fail to comply with modifications to System Standards on the COOL BINZ owners' intranet website, or in the Operations Manual within the required time period;
• 1. You fail to make payments on the vehicle resulting in repossession and you do not have a vehicle that meets our standards to operate the Business;
• 1. You fail to receive our prior written approval and use products or materials that do not meet our System Standards and/or do not promptly discontinue use after written notice from us;
• 1. You fail to timely provide us with any report, statement, or return required by this Agreement;
• 1. You fail to service all Customers in a manner consistent with our System Standards and reputation and you fail to cure such inconsistency;
• 1. You market or advertise in a COOL BINZ Affiliates' Territory without permission;
• 1. You establish an office location outside of your Territory without our prior written consent;
• 1. You fail to immediately endorse and deliver to us any payments due to us from any third party that is erroneously made to you;
• 1. If you fail to maintain the prescribed months, days or hours of operation at the COOL BINZ Business;
• 1. If you fail, in our sole discretion, to personally supervise day-to-day operation of the COOL BINZ Business or fail to employ a sufficient number of qualified, competent personnel as we require from time to time;
• 1. If you fail to maintain the strict quality controls reasonably required by this Agreement and/or the Operations Manual;
• 1. You conduct yourself in a manner that, although not criminal, reflects adversely on the System, the Marks, or the products offered through the System; or
• 1. You fail to procure or maintain any licenses, certifications, or permits necessary for the operation of your COOL BINZ Business.
• 1. You order or purchase supplies, signs, furnishings, fixtures, equipment or inventory from an unapproved supplier.

We also have the right to terminate this Agreement after providing notice and a 30 day cure period if you fail to perform or comply with any one or more of the terms or conditions of this Agreement or the Operations Manual not specifically contained in Section 12.A above; including, without limitation, any warranty, or certification of this Agreement, and any System Standard or other provision in the COOL BINZ owners' intranet website or the Operations Manual.

In addition to our right to terminate this Agreement, and not in lieu of such right, or any other rights we may have against you, upon a failure to cure any default within the applicable time period (if any), we have the right, but not the obligation to,

• 1. Charge the Non-Compliance Fee;
• 1. Reduce the size of your Territory or permit other franchisees or Company Stores to provide the Services and Products within your Territory;
• 1. Enter upon the COOL BINZ Business premises and exercise complete authority with respect to the operation of the COOL BINZ Business until such time as we determine, in our sole discretion that the default has been cured, and you are otherwise in compliance with this Agreement. In the event we exercise the rights described in this Section, you must pay us a reasonable management fee and reimburse us for all reasonable costs and overhead, if any, incurred in connection with our operation of your COOL BINZ Business including, without limitation, costs of personnel for supervising and staffing the COOL BINZ Business and their travel and lodging accommodations, plus a 20% service charge.

Source: Item 23 — RECEIPTS (FDD pages 63–238)