Is Cool Binz required to purchase containers, trucks, and equipment from the franchisee upon termination?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
nder its Schedule will be reduced to the applicable percentage in effect based on the time elapsed after original purchase.
| 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. The rights and remedies of CBI as a secured party under this Agreement and under applicable law are cumulative and non-exclusive.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, upon the termination or expiration of the Franchise Agreement, the franchisee is expected to cooperate with Cool Binz to facilitate the repurchase of all or some of the equipment. However, this is conditional, as the franchisee has the option to sell the equipment to another Cool Binz franchisee, provided they obtain Cool Binz's consent.
Cool Binz commits to repurchasing the storage containers (referred to as "Bins") based on a specific table that considers reasonable wear and tear and regular maintenance. The repurchase price is subject to adjustments if any components of the original Bins are missing, or if there is damage or excessive wear and tear. The repurchase price is determined by applying a percentage to the original Bins pricing, based on the time elapsed since the original purchase.
These stipulations carry significant implications for a prospective Cool Binz franchisee. While Cool Binz does not explicitly commit to repurchasing all equipment (such as trucks), they do commit to repurchasing storage containers under certain conditions. The franchisee needs to maintain the equipment properly to ensure a fair repurchase price. The franchisee also has the option to sell to another franchisee, which could potentially yield a better return than selling back to Cool Binz, but this requires Cool Binz's approval.