What is the relationship between Cool Binz and BFG Holdco, Inc.?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
seek to recover those amounts from the affiliate; however, the Company does not hold specific recourse or collateral rights in connection with the guarantee.
15. Retirement Plans
The Company sponsors a 401(k) plan for substantially all employees. The plan provides for the Company to make a required matching contribution. The Company may also make additional discretionary contributions to the plan. Contributions to the plan totaled $181, $212 and $244 for the years ended December 31, 2024, 2023, and 2022 respectively.
GUARANTEE OF PERFORMANCE
For value received, BFG Holdco, Inc., a Delaware corporation (the "Guarantor"), located at 3310 West End Avenue, Suite 620, Nashville, TN 37203, absolutely and unconditionally guarantees to assume the duties and obligations of Chem-Dry, Inc., NHance, Inc., 1-800 Water Damage International, LLC, Hoodz International, LLC, Ductz International, LLC, Patch Boys International, LLC, Plumberz International, LLC, Packoutz International, LLC, Safer Home Services International, LLC, Cool Binz International, LLC, Redbox+ International, LLC and JunkCo+ International, LLC, under their franchise registrations in each state where the franchises are registered, and under its Franchise Agreement identified in their Franchise Disclosure Documents issued March 28, 2025 (individually, each, a "Franchisor"), and as the Franchise Agreements may be entered into with all such obligations of the Franchisor under its franchise registrations and the Franchise Agreement are satisfied or until the liability of Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever occurs first. The Guarantor is not discharged from liability if a claim by a franchisee against the Franchisor remains outstanding, notice of acceptance is waived.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 62)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, BFG Holdco, Inc. is an affiliate of Cool Binz. Specifically, BFG Holdco, Inc. is a wholly-owned subsidiary of BELFOR and owns other franchise companies. Cool Binz International, LLC is one of the franchise companies that BFG Holdco, Inc. guarantees the duties and obligations for under their franchise registrations.
BFG Holdco, Inc. provides a guarantee of performance to Cool Binz International, LLC, assuming the duties and obligations for Cool Binz under its franchise registrations. This guarantee remains in effect until all obligations of Cool Binz to its franchisees are satisfied or the liability of Cool Binz to its franchisees under the Franchise Agreement has been completely discharged.
For a prospective Cool Binz franchisee, this guarantee from BFG Holdco, Inc. offers a degree of security. It means that BFG Holdco, Inc. is financially backing Cool Binz's obligations to its franchisees. In the event that Cool Binz were to default on its obligations, BFG Holdco, Inc. would step in to fulfill them. This type of guarantee is not uncommon in franchising, especially when the franchisor is part of a larger corporate group, as it provides reassurance to franchisees about the stability and commitment of the franchisor.