Does the release by the Cool Binz franchisee cover unknown claims?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
or oral, any standard of conduct that is unreasonable.
Financial Assurance. Based upon our financial condition, the Department has required that we provide financial assurance of our ability to perform our obligations to you. We have obtained a surety bond in the amount of $59,900, which is on file with the Department and a copy of which will be provided to you upon request.
Agreements/Releases. The following language is added to Section 11.C.:
- Provided; however, that such general releases do not apply to the extent prohibited by applicable law with respect to claims which arise under Minn. Rule 2860.4400D. Minn. Rule 2860.4400D. prohibits us from requiring you to assent to a general release that would relieve any person from liability imposed by Minnesota Statutes, Chapter 80C.
No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including, fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with this franchise.
In all other respects, the terms and conditions contained in your Franchise Agreement, and any previous Addendums to your Franchise Agreement, remain in effect.
COOL BINZ INTERNATIONAL, LLC Title: ________________________________
Date: ________________________________
Title: ________________________________
Date: ________________________________
ADDENDUM TO THE FRANCHISE AGREEMENT FOR USE IN NEW YORK
This is a Rider to the Franchise Agreement which is being executed concurrently with this Rider, between Franchisor and Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the general release required upon assignment does have some limitations regarding unknown claims, particularly concerning state franchise laws. Specifically, in Minnesota, the general release cannot relieve any person from liability imposed by Minnesota Statutes, Chapter 80C. This means that Cool Binz franchisees in Minnesota retain certain rights and protections under state law, even with a general release.
Additionally, the FDD states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Cool Binz or its representatives. This provision supersedes any other term in any document executed in connection with the franchise, reinforcing the protection of franchisees' rights under state laws.
For franchisees in Maryland, any limitation of claims provisions cannot reduce the three-year statute of limitations for claims arising under the Maryland Franchise Registration and Disclosure Law. Furthermore, the representations, acknowledgments, and affirmations made by the franchisee are not intended to act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Act. These stipulations ensure that franchisees in Maryland retain their rights and legal recourse under state franchise laws, despite any general release or acknowledgments they may sign.
Therefore, while Cool Binz requires a general release upon assignment, the FDD includes provisions that protect franchisees' rights under specific state franchise laws, particularly in Minnesota and Maryland. These provisions limit the extent to which the general release can waive claims, especially those related to fraud, misrepresentation, or violations of state franchise regulations. Prospective franchisees should carefully review the state-specific addenda and consult with legal counsel to fully understand the implications of the general release in their specific state.