Is prior written approval required from Cool Binz to transfer the franchise agreement?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree that we have entered into this Agreement with you based on your personal qualifications, experience, skills, character, etc. Thus, you cannot transfer this Agreement. "Transfer" shall mean any voluntary, involuntary, direct, or indirect, in whole or in part, assignment, sale, gift, encumbrance, lease, merger, bequest, change in control, or other disposition of 1) this Agreement or any rights thereunder, 2) the COOL BINZ Business or its assets, 3) any part of your ownership interest in the assets of the COOL BINZ Business , or 4) any part of your equity/ownership interest in the Franchisee entity, or a grant of an option, warrant or right to acquire an equity or ownership interest, including but not limited to by divorce, insolvency, probate or intestate succession, trust, or other operation of law. All Transfers require our prior written approval and are subject to the conditions below. Any such Transfer without our prior written approval will be void and will constitute a breach of this Agreement. We will not, however, unreasonably withhold our approval provided that the conditions specified below are met, which we will determine in our sole discretion:
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, franchisees must obtain prior written approval from Cool Binz to transfer the franchise agreement. The document specifies that because Cool Binz has entered the agreement based on the franchisee's personal qualifications, experience, skills, and character, the franchisee cannot transfer the agreement without Cool Binz's consent.
The term "transfer" encompasses a broad range of actions, including any voluntary or involuntary assignment, sale, gift, encumbrance, lease, merger, bequest, change in control, or other disposition of the agreement, the Cool Binz business or its assets, any part of the franchisee's ownership interest in the assets, or any part of the equity/ownership interest in the franchisee entity. This also includes granting an option, warrant, or right to acquire an equity or ownership interest, even through events like divorce, insolvency, or inheritance.
The FDD states that any transfer without prior written approval from Cool Binz will be considered void and a breach of the agreement. However, Cool Binz will not unreasonably withhold approval if certain conditions are met, which Cool Binz will determine at its sole discretion. These conditions include the franchisee being in full compliance with all agreements and having paid all accrued monetary obligations, and the transferee demonstrating sufficient business experience, aptitude, and financial resources to meet Cool Binz's standards for new franchisees.