What is the procedure for Cool Binz to handle disputes between owners of a Cool Binz franchise?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
Before attending the Initial Training and/or upon any change to the legal entity ownership, you must submit to us a corporate resolution, or similar action, which states the name of the corporation or LLC, the legal names of all of the partners or shareholders, the percentage of ownership that each member controls, their place of residence and their agreement to be bound by the terms of the Franchise Agreement. In the case of multiple owners, you must submit a dispute resolution procedure acceptable to us in our sole discretion that states what you will do in the event that there is a conflict between any owners of the franchisee entity. In addition, at all times, the owners who have executed the Franchise Agreement must control 67% of the franchisee entity. The remaining owners must sign a written confidentiality and non-compete agreement in the form we prescribe.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, if there are multiple owners of a Cool Binz franchise, the franchisee must submit a dispute resolution procedure that is acceptable to Cool Binz. This procedure must outline how conflicts between the owners of the franchisee entity will be resolved.
Cool Binz retains sole discretion to approve or reject the submitted dispute resolution procedure. Additionally, the owners who have executed the Franchise Agreement must maintain control of at least 67% of the franchisee entity. The remaining owners are required to sign a written confidentiality and non-compete agreement in a form prescribed by Cool Binz.
This requirement ensures that Cool Binz has insight into how internal disputes will be managed within a franchise with multiple owners. It also allows Cool Binz to ensure that the resolution process aligns with their standards. Prospective franchisees should carefully consider and document their dispute resolution process to ensure it meets Cool Binz's approval.