Regarding Cool Binz franchises, which sections of the Franchise Agreement outline the obligations for pre-opening purchases and leases?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
ening Obligations*
Before you open your COOL BINZ Business, we will:
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- Designate the Territory for a COOL BINZ Business (Section 1.D and the Summary Page of the Franchise Agreement). We do not provide any assistance with (a) selecting a business site or negotiation of any lease or purchase of any site, (b) conforming the site to local ordinances and codes and obtaining any required permits, or (c) hiring and training employees (other than the required training discussed in Section 3.A of the Franchise Agreement). Your business site must be located within the Territory and must contain at least 500 square feet and a minimum lot size of 0.5 to 1.0 acre, and must adhere to our standards and specifications, which includes demographics, size, local traffic, whether there are complementary businesses or competitors in the area, and similar characteristics. Your COOL BINZ Business site must be approved by us, in our sole discretion, which we will not unreasonably withhold provided that the site meets our minimum specifications. (Section 1.D of the Franchise Agreement). We will use commercially reasonable efforts to approve a suggested site in 30 days. Failure to find a site and commence operation of the COOL BINZ Business within eight (8) months of signing the Franchise Agreement may result in termination of the Franchise Agreement (Section 12.B of the Franchise Agreement). We do not generally (a) own the premises from which franchisees operate the COOL BINZ Business or (b) lease any premises to franchisees to operate the COOL BINZ Business.
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- Provide your Initial Equipment Package that includes the truck, bins, mule, and other equipment needed to operate the COOL BINZ Business and the Initial Promotional Package that includes logowear, digital marketing, consumables, and promotional items. The items in the Initial Equipment Package and the Initial Promotional Package are purchased from us. Other than providing the Initial Equipment Package and the Initial Promotional Package we do not provide, install or supply any signs, fixtures, equipment, opening inventory, signs, or other
inventory or supplies, or assist in constructing, remodeling, or decorating the COOL BINZ Business.
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- Loan to you a copy of our copyrighted Operations Manual and System Standards, and other proprietary materials or manuals as we may publish and distribute to you periodically (Section 3.C of the Franchise Agreement).
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- Give prior approval for use of business forms, business stationery, business cards, advertising materials, permanent materials, and forms that you intend to use (Section 7.A of the Franchise Agreement). We will continue to do this after you open the COOL BINZ Business.
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- Give prior approval to all marketing, advertising, and promotional materials prepared by you within ten days of our receipt of the proposed materials for Franchises (Section 2.G of the Franchise Agreement). We will continue to do this after you open the COOL BINZ Business.
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Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 34–35)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, Section 1.D of the Franchise Agreement relates to designating the territory for a Cool Binz business. Item 11 notes that Cool Binz does not provide assistance with selecting a business site or negotiating any lease or purchase of any site. The franchisee's business site must be located within the designated territory, contain at least 500 square feet, have a minimum lot size of 0.5 to 1.0 acre, and adhere to Cool Binz's standards and specifications. Cool Binz must approve the site, and failure to find a site and commence operations within eight months of signing the Franchise Agreement may result in termination of the agreement, as stated in Section 12.B of the Franchise Agreement. Cool Binz does not generally own or lease premises to franchisees.
Item 11 also states that Cool Binz will provide the Initial Equipment Package and the Initial Promotional Package, which are purchased from Cool Binz. Other than these packages, Cool Binz does not provide, install, or supply any signs, fixtures, equipment, opening inventory, signs, or other inventory or supplies, nor do they assist in constructing, remodeling, or decorating the Cool Binz Business.
Furthermore, Item 11 mentions that at Cool Binz's request, the franchisee must purchase or lease and maintain the Computer System, COOL BINZ Software, and the Required Software. Cool Binz may require franchisees to update or upgrade their Computer System at any time during the term of the franchise agreement, and there is no limit on the frequency or cost of this obligation. Cool Binz may also require the use of certain internet and cloud-based services or subscriptions at the franchisee's sole expense.