What is the required use of the proceeds from the Cool Binz Promissory Note?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The Undersigned hereby confirms that the proceeds of this Promissory Note will be used for the business purpose of starting a COOL BINZ franchised business.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the proceeds from the Promissory Note must be used specifically for starting a Cool Binz franchised business. This requirement is explicitly stated in the document, ensuring that the funds are directed towards establishing and operating the franchise.
This stipulation is a protective measure for Cool Binz, ensuring that franchisees invest the borrowed funds directly into the business. It prevents the franchisee from using the money for unrelated purposes, which could jeopardize the franchise's financial stability and performance.
For a prospective franchisee, this means that the Promissory Note is specifically tied to the launch of their Cool Binz franchise. They cannot divert these funds to other ventures or personal expenses. This condition underscores the importance of careful financial planning and commitment to the Cool Binz franchise model.