Is the requirement to sign a general release for a Cool Binz transfer subject to change?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
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- you, your principals, and the transferee (if we have a prior relationship with the transferee) have signed a general release, in a form satisfactory to us, of any and all claims against us and our shareholders, officers, directors, employees, and agents (such requirement to sign a general release is subject to change in our sole discretion);
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the requirement to sign a general release during a transfer of ownership is subject to change at Cool Binz's discretion. Specifically, the franchisee, their principals, and the transferee must sign a general release of claims against Cool Binz and its affiliates. However, Cool Binz retains the right to modify or waive this requirement.
This means that Cool Binz can choose to not require a general release, or alter the terms of the release, based on their assessment of the specific transfer situation. This flexibility allows Cool Binz to adapt to different circumstances and protect its interests as needed.
A prospective franchisee should be aware that this requirement could be in place at the time of a transfer. They should seek clarification from Cool Binz regarding the current policy on general releases and understand the potential implications for both the seller and the buyer in a transfer scenario. It is also important to note that in certain states like Minnesota, such general releases may be limited by applicable law.