Does Cool Binz have rights in addition to termination if a default is not cured?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to our right to terminate this Agreement, and not in lieu of such right, or any other rights we may have against you, upon a failure to cure any default within the applicable time period (if any), we have the right, but not the obligation to,
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- Charge the Non-Compliance Fee;
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- Reduce the size of your Territory or permit other franchisees or Company Stores to provide the Services and Products within your Territory;
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- Enter upon the COOL BINZ Business premises and exercise complete authority with respect to the operation of the COOL BINZ Business until such time as we determine, in our sole discretion that the default has been cured, and you are otherwise in compliance with this Agreement. In the event we exercise the rights described in this Section, you must pay us a reasonable management fee and reimburse us for all reasonable costs and overhead, if any, incurred in connection with our operation of your COOL BINZ Business including, without limitation, costs of personnel for supervising and staffing the COOL BINZ Business and their travel and lodging accommodations, plus a 20% service charge. This fee is in addition to the payment of the Royalty and all other fees due under this Agreement during the time we exercise our rights under this Agreement. If we undertake to operate the COOL BINZ Business pursuant to this Section, you agree to indemnify and hold us (and our representative(s) and employees) harmless from and against any fines, claims, suits or proceedings that may arise out of our operation of the COOL BINZ Business.
Our delay in exercising or failing to exercise any right or remedy under this Agreement or our acceptance of any late or partial payment due hereunder will not constitute a waiver of any of our rights or remedies against you.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, in addition to Cool Binz's right to terminate the agreement, Cool Binz has other rights if a default is not cured. These rights are not in place of the right to terminate or any other rights Cool Binz may have against the franchisee. Upon failure to cure any default within the applicable time period, Cool Binz has the right, but not the obligation to charge a Non-Compliance Fee. Cool Binz can also reduce the size of the franchisee's territory or allow other franchisees or company stores to provide services and products within the franchisee's territory.
Cool Binz also has the right to enter the Cool Binz business premises and exercise complete authority with respect to the operation of the Cool Binz business until Cool Binz determines the default has been cured and the franchisee is in compliance with the agreement. If Cool Binz exercises this right, the franchisee must pay Cool Binz a reasonable management fee and reimburse Cool Binz for all reasonable costs and overhead incurred in connection with the operation of the Cool Binz business. This includes costs of personnel for supervising and staffing the Cool Binz business and their travel and lodging accommodations, plus a 20% service charge.
This fee is in addition to the payment of the royalty and all other fees due under the agreement during the time Cool Binz exercises its rights under the agreement. If Cool Binz operates the Cool Binz business, the franchisee agrees to indemnify and hold Cool Binz harmless from and against any fines, claims, suits, or proceedings that may arise out of Cool Binz's operation of the Cool Binz business. Cool Binz's delay in exercising or failing to exercise any right or remedy under the agreement or acceptance of any late or partial payment will not constitute a waiver of any of Cool Binz's rights or remedies against the franchisee.