What is the purpose of the Cool Binz Equipment Sales and Security Agreement?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
| Time Elapsed After Original Purchase | Percentage of Bins Equipment Price |
|---|---|
| Under 1 year | 65% |
| Under 2 Years | 50% |
| Under 3 Years | 35% |
| Under 4 Years | 20% |
| Under 5 Years | 15% |
| Over 5 Years | Offer After Inspection |
- 6. RETURN OF EQUIPMENT. Upon expiration or termination of the Franchise Agreement, Franchisee will cooperate with CBI to repurchase all or some of the Equipment pursuant to the terms in the Franchise Agreement, unless Franchisee has arranged for the sale of the Equipment to another COOL BINZ franchisee with the consent of CBI.
- 7. COVENANTS OF FRANCHISEE. Franchisee covenants with CBI to (i) use and maintain the Equipment in a lawful manner and so as not to violate any law or regulation of the state, city or other political subdivisions in which Franchisee uses the Equipment; (ii) return, pay and file when due all taxes, fees and similar charges, including without limitation sales or use tax, and ad valorem and personal property taxes, imposed on the ownership, possession or use of the Equipment; (iii) keep the Equipment free and clear of all liens, security interests, claims and encumbrances except for those incurred through the initial financing of the Equipment with CBI or from a vendor approved by CBI; (iv) obtain and maintain property insurance on the Equipment covering loss, damage, theft, vandalism and casualty; (v) maintain the Equipment per the manufacturer's maintenance, repair and replacement instructions; (vi) maintain in place any notices, labels or other indicia provided by CBI to indicate that the Equipment is subject to this Agreement; (vii) operate the Business as required under the Franchise Agreement; and (viii) notify CBI when any party claims any interest in the Equipment.
- 8. GRANT OF SECURITY INTEREST. In the event Franchisee's purchase of the Equipment sold under the Invoice is financed by CBI, Franchisee hereby grants to CBI a continuing security interest in the Equipment sold to Franchisee, and any additions, accessions, accessories, attachments and replacements of such Equipment, any proceeds and products. The security interest shall continue for the term of this Agreement to secure Franchisee's obligations under this Agreement. Franchisee authorizes CBI to file a financing statement with regards to the Equipment without the necessity of obtaining an additional signature from Franchisee.
Source: Item 22 — CONTRACTS (FDD pages 62–63)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the Equipment Sales and Security Agreement outlines the terms and conditions related to the purchase, use, maintenance, and security of equipment used in the Cool Binz franchise. If Cool Binz finances the franchisee's equipment purchase, the agreement grants Cool Binz a security interest in the equipment, including any additions or replacements. This security interest secures the franchisee's obligations under the agreement.
The agreement also details the franchisee's responsibilities regarding the equipment. The franchisee must use and maintain the equipment lawfully, adhering to all applicable laws and regulations. They are responsible for paying all taxes, fees, and charges associated with the equipment, and must keep the equipment free of any liens or encumbrances. Additionally, franchisees are required to obtain and maintain property insurance on the equipment to cover potential losses or damages.
Upon termination or expiration of the franchise agreement, the franchisee is obligated to cooperate with Cool Binz to repurchase the equipment, or alternatively, the franchisee can sell the equipment to another Cool Binz franchisee with Cool Binz's consent. The agreement ensures that Cool Binz retains certain rights and control over the equipment used in its franchise system, protecting its investment and maintaining the integrity of the Cool Binz brand.