Who is required to sign a general release when transferring a Cool Binz franchise?

According to Cool Binz's 2025 Franchise Disclosure Document, when transferring a franchise, the franchisee, their principals, and the transferee (if Cool Binz has a prior relationship with the transferee) are required to sign a general release. This release, in a form satisfactory to Cool Binz, covers any and all claims against Cool Binz and its shareholders, officers, directors, employees, and agents. However, Cool Binz retains the discretion to change this requirement.

This requirement means that as a Cool Binz franchisee, you, along with your business partners, must release Cool Binz from any potential legal claims before you can transfer your franchise to a new owner. If Cool Binz already knows the person or company you're selling to, that new owner may also have to sign the release. This protects Cool Binz from future lawsuits related to your operation of the franchise.

It's important to note that this requirement is subject to change at Cool Binz's discretion, so it's essential to confirm the current policy with Cool Binz before initiating a transfer. Additionally, the FDD specifies an exception related to Minnesota law, stating that the general release cannot waive claims protected under Minnesota Statutes, Chapter 80C. This highlights the importance of understanding any state-specific regulations that may affect the enforceability of such releases.

Prospective franchisees should carefully review the general release document and understand its implications before signing. Consulting with an attorney is advisable to ensure full comprehension of the rights being waived and to assess any potential risks associated with the release.