What sections of the Cool Binz Franchise Disclosure Document and Franchise Agreement are modified regarding consent to termination or liquidated damages?

According to the 2025 Cool Binz Franchise Disclosure Document, modifications are made to the standard agreement regarding a franchisee's consent to termination or liquidated damages. Specifically, for franchisees in North Dakota, Item 17(i) of the Franchise Disclosure Document and Section 12.D of the Franchise Agreement, which likely contain clauses requiring consent to termination or dealing with liquidated damages, are deleted in their entirety. This means that franchisees in North Dakota are not required to consent to termination or liquidated damages, superseding any conflicting language in the standard agreement.

This modification is significant because it alters the legal obligations and financial risks for Cool Binz franchisees operating in North Dakota. Liquidated damages clauses, which specify a predetermined amount of money to be paid in the event of a breach of contract, can be a point of contention in franchise agreements. By removing the requirement for franchisees to consent to such terms, the agreement becomes more favorable to the franchisee in North Dakota, potentially reducing their financial exposure in the event of termination.

It is important for prospective Cool Binz franchisees in all states to carefully review Item 17 and Section 12.D of the Franchise Agreement to understand the standard terms regarding termination and liquidated damages. Franchisees should also consult with a legal professional to understand the implications of these clauses and how they may be affected by state-specific modifications like the one described for North Dakota. Understanding these modifications is crucial for making an informed decision about investing in a Cool Binz franchise.