What is the scope of the release provided by the Cool Binz franchisee to the franchisor?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
including specific performance.
Please indicate that you agree to the conditions, as stated above, under which confidential information will be furnished to you by signing a copy of this letter in the space provided below.
| By: | Signature | Date: | |
|---|---|---|---|
EXHIBIT A-3 TO THE FRANCHISE DISCLOSURE DOCUMENT
GENERAL RELEASE(S)
GENERAL RELEASE – REQUIRED UPON RENEWAL
THIS SETTLEMENT AND RELEASE is being made by and between COOL BINZ INTERNATIONAL, LLC ("FRANCHISOR") and [Name] (together referred to as the "FRANCHISE OWNER" and/or "you") resident of [State], and [Corp/LLC,] ("Franchisee") and shall be effective as of the date of the last signature below.
W I T N E S S E T H:
WHEREAS, FRANCHISOR and FRANCHISE OWNER(S) entered into Franchise Agreement on the [date] (the "Franchise Agreements") for the operation of a COOL BINZ business in a defined territory(s) in the state of [State] (the "Business"), which Franchise Agreements is being renewed;
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by and between each of the parties, it is agreed and understood as follows:
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- FRANCHISE OWNER(S) and FRANCHISOR have agreed upon new renewal Franchise Agreements, to be executed contemporaneously with this Mutual Release, which will replace your original Franchise Agreements, thus continuing FRANCHISE OWNER(S) rights to operate a COOL BINZ business within a Territory, as defined in the Franchise Agreement in the State of [State].
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- In reliance upon the execution of renewal Franchise Agreements, the parties agree to the following mutual releases:
- A.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, franchisees are required to sign a general release under certain circumstances. Specifically, a general release is required upon renewal of the franchise agreement and upon assignment of the franchise agreement. These releases are made between Cool Binz International, LLC (the franchisor) and the franchisee. The release becomes effective on the date of the last signature.
The general release upon renewal is executed when the franchisee and Cool Binz renew their franchise agreement for operating a Cool Binz business within a defined territory. The document states that the release is made for good and valuable consideration, the receipt and sufficiency of which is acknowledged by both parties.
The general release upon assignment is executed when the franchisee transfers or assigns their rights and obligations under the franchise agreement to another party. This ensures that Cool Binz is protected from potential liabilities or claims arising from the previous franchisee's operations.
However, the FDD also notes an important exception: these general releases do not apply to claims arising under Minnesota Statutes, Chapter 80C, to the extent prohibited by applicable law. This statute prevents Cool Binz from requiring a release that would relieve any person from liability imposed by Minnesota Statutes. Additionally, no statement, questionnaire, or acknowledgement can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor.