What is the scope of the release regarding claims for Cool Binz?
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, a general release is required under certain conditions when transferring a franchise. Specifically, if Cool Binz has a prior relationship with the transferee, the transferring franchisee, their principals, and the transferee must sign a general release. This release, in a form satisfactory to Cool Binz, covers any and all claims against Cool Binz, its shareholders, officers, directors, employees, and agents.
This requirement for a general release is, however, subject to change at Cool Binz's sole discretion. This means Cool Binz can choose to waive this requirement or modify its terms.
For a prospective Cool Binz franchisee, this implies that when selling their franchise, they may be required to sign a release that gives up any potential claims against Cool Binz. This could include past, present, or future claims. The franchisee should seek legal counsel to fully understand the implications of such a release before signing it. It is also important to note that the franchisor has the discretion to change this requirement.