What rights does Cool Binz reserve if a franchisee is not in full compliance with the Franchise Agreement?
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, if a franchisee fails to cure a default within the specified time, Cool Binz has several rights. Cool Binz can charge a Non-Compliance Fee, reduce the franchisee's territory size, or allow other franchisees or company stores to operate within the original franchisee's territory.
Additionally, Cool Binz has the right to enter the franchisee's business premises and take complete authority over the Cool Binz business until the default is resolved, as determined by Cool Binz. During this period, the franchisee must pay Cool Binz a reasonable management fee, reimburse all reasonable costs and overhead incurred, including personnel costs, travel, and lodging, plus a 20% service charge. This fee is in addition to the royalty and all other fees due under the agreement.
The franchisee also agrees to indemnify and hold Cool Binz harmless from any fines, claims, suits, or proceedings arising from Cool Binz's operation of the business during this time. Cool Binz's delay or failure to exercise any right or remedy, or acceptance of late or partial payment, does not waive any of their rights or remedies against the franchisee.