What section of the Cool Binz Franchise Agreement outlines the franchisee's obligations on termination or non-renewal?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provisions | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| or any other lien is placed against you and not released or bonded within 30 days; (xx) you become insolvent; (xxi) you order or purchase supplies, signs, furnishings, fixtures, equipment or inventory from an unapproved supplier; (xxii) you misuse or make unauthorized use of any COOL BINZ /Required Software; (xxiii) you fail to comply with the anti-terrorism provision; (xxiv) you take for your own personal use any assets or property of the COOL BINZ Business; or (xxv) if there are insufficient funds in your bank account to cover a check or EFT payment 3 or more times within any 12-month period or you fail to achieve minimum sales for 3 consecutive months. These provisions are subject to state law. | |||
| i. | Franchisee's obligations on termination/no n-renewal | Section 13 | Upon termination or early expiration of the Franchise Agreement, your obligations include: (i) pay all amounts owed to us; (ii) de identify and otherwise stop using the Marks in any manner, including in business names and telephone listings; (iii) return all Confidential Information and customer lists to us; (iv) comply with post-term non-competition covenants; and (v) deliver proof of compliance. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 53–58)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, Section 13 of the Franchise Agreement outlines the franchisee's obligations upon termination or non-renewal. These obligations include several key actions that a franchisee must undertake when the franchise agreement ends, whether through termination or expiration.
Specifically, the franchisee is required to pay all outstanding amounts owed to Cool Binz. They must also cease using Cool Binz's trademarks in any manner, including in business names and telephone listings, effectively de-identifying themselves from the brand. Furthermore, the franchisee is obligated to return all confidential information and customer lists to Cool Binz.
In addition to these immediate actions, the franchisee must comply with post-term non-competition covenants, which restrict their ability to engage in similar businesses after the franchise ends. Finally, the franchisee is required to provide proof of compliance with all these obligations, ensuring that Cool Binz has verification that the franchisee has met all necessary requirements upon termination or non-renewal.