Does Cool Binz reserve the right to specify a specific insurance provider in the future?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
All policies will be written by an insurance company(ies) that is/are licensed in the state in which you are doing business, and that has an A.M. Best rating of "A" or better. Currently, you are not obligated by the terms of this Agreement to purchase your insurance from any specific provider, although we reserve the right to specify the specific provider that you must use in the future.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, franchisees are not currently required to purchase insurance from a specific provider. However, Cool Binz retains the right to mandate the use of a specific insurance provider in the future.
Currently, Cool Binz requires that all insurance policies be written by insurance companies licensed in the state where the franchisee operates, with an A.M. Best rating of "A" or better. This ensures that the insurance provider is financially stable and capable of meeting its obligations.
Should Cool Binz exercise its right to specify a particular insurance provider, franchisees would be obligated to switch to that provider, potentially impacting their existing relationships and possibly incurring additional costs if the new provider's rates are higher. It is important for prospective franchisees to consider this potential change and discuss it with Cool Binz to understand the circumstances under which such a change might occur and its potential impact on their business.