What is the requirement for a Cool Binz franchisee to designate a Managing Owner?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
You must at all times faithfully, honestly, and diligently perform your obligations under this Agreement. Except as stated herein, you must designate at least one managing owner (the "Managing Owner") who will be our primary individual contact with the COOL BINZ Business and who we will approve in our sole discretion. A Managing Owner may, in our sole discretion, serve as the Managing Owner of more than one COOL BINZ Business that is owned by you; provided, however, that we may, in our sole discretion, require you to designate a person who will serve as the primary individual contact for this COOL BINZ Business (the "Designated Manager"). We must approve of the Designated Manager in writing, which we may grant in our sole discretion. The Managing Owner and, if applicable, the Designated Manager, must successfully complete our JumpStart and Initial Training Programs as described in and required by the Franchise Agreement. The Designated Manager is not required to have an ownership interest in the COOL BINZ Business. The Managing Owner or, if applicable, the Designated Manager must continuously exert her/his full-time best efforts to manage, promote and enhance the COOL BINZ Business, and such other COOL BINZ Businesses as we permit in our sole discretion. Without our prior written permission, the Managing Owner and, if applicable, the Designated Manager, must not engage in any other business or activity that conflicts with their obligations to operate the COOL BINZ Business on a full-time, year round basis. In the case of
multiple owners, the owner with day-to-day responsibility and authority to run the COOL BINZ Business and with whom we will communicate shall be identified on the signature line as the first Managing Owner.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, franchisees must designate at least one managing owner who will be the primary contact with the company. Cool Binz must approve this managing owner at their sole discretion. A managing owner can oversee more than one Cool Binz business, but Cool Binz can also require the franchisee to designate a separate individual as the primary contact for each specific Cool Binz Business, called a 'Designated Manager'. Cool Binz's approval of the Designated Manager is also required.
The Managing Owner and, if applicable, the Designated Manager, must complete Cool Binz's JumpStart and Initial Training Programs. The Designated Manager is not required to have an ownership stake in the Cool Binz Business. The Managing Owner or Designated Manager must dedicate their full-time efforts to managing and promoting the Cool Binz Business, and they cannot engage in conflicting business activities without prior written permission from Cool Binz.
In cases where there are multiple owners, the owner with the day-to-day responsibility and authority to run the Cool Binz Business will be identified as the Managing Owner. This individual will be Cool Binz's primary point of contact. This requirement ensures that Cool Binz has a clear and direct line of communication with a responsible party actively involved in the business's operations. This structure is fairly typical in franchising, as franchisors need a consistent point of contact to ensure brand standards and operational consistency.