Regarding Cool Binz franchises, can the franchisee represent that their relationship with the franchisor is anything other than that of franchisor and franchisee?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither you nor we will make any express or implied agreements, warranties, guarantees, or representations or incur any debt in the name of or on behalf of the other party, or represent that the relationship between you and us is other than that of franchisor and franchisee. We do not assume any liability, and will not be deemed liable for any agreements, representations, or warranties made by you which are not expressly authorized under this Agreement, for any damages to any person or property which directly or indirectly arise from or relate to your operation of the COOL BINZ Business authorized by this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, franchisees are explicitly prohibited from misrepresenting their relationship with the franchisor. The agreement states that neither Cool Binz nor the franchisee can make any representations suggesting their relationship is anything other than that of franchisor and franchisee.
This provision ensures clarity in all dealings and prevents franchisees from implying a partnership, joint venture, agency, or any other type of relationship with Cool Binz. This protects Cool Binz from potential liabilities or obligations arising from unauthorized representations made by franchisees.
For a prospective Cool Binz franchisee, this means they must be transparent in all their interactions with customers, suppliers, and other parties, clearly identifying themselves as an independent franchisee. They cannot create the impression that they are an employee or agent of Cool Binz, or that Cool Binz is directly liable for their business operations. This requirement is a standard practice in franchising, designed to maintain a clear legal and operational distinction between the franchisor and its franchisees.