What sections of the Cool Binz Franchise Disclosure Document outline the transfer requirements referenced in the event of death or disability?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
D. YOUR DEATH OR DISABILITY; DIVORCE.
Upon your death or disability (or the death or disability of an owner of 33% or more of Franchisee, (referred to in this document as "your death or disability")) the executor, administrator, conservator, guardian, or other personal representative of Franchisee must transfer your interest in this Agreement or in Franchisee, in accordance with Sections B and C above, to a third party within a reasonable amount of time, but not to exceed six (6) months. During this time between the death and disability and the transfer required by this Section, the COOL BINZ Business must be operated in full compliance with this Agreement, as set forth in the next paragraph. The transfer will be subject to all of the terms and conditions applicable to transfers that are contained in this Section.
In the event of the Designated General Manager's death or disability, and before a transfer of his/her interests in this Agreement, another owner of Franchisee, or the Designated General Manager's spouse, child, or parent may temporarily operate the COOL BINZ Business only if 1) this party otherwise would qualify as a transferee, 2) personally manages the business on a full time basis, 3) is approved by the Franchisor, 4) successfully completes our Training Program as described in Section 3.A, and 5) signs an assignment and assumption of the Franchise Agreement or the then-current form of franchise agreement, if applicable. If no qualified person applies to Franchisor to operate the COOL BINZ Business in the interim, Franchisor shall have the right to appoint a representative or another franchisee to operate it upon giving notice to the executor.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, Item 23 outlines the transfer requirements in the event of death or disability. Specifically, section D discusses the procedures that must be followed upon the death or disability of the franchisee or an owner holding 33% or more interest in the franchise. The executor or representative is required to transfer the interest within six months, adhering to the general transfer conditions detailed in Sections B and C of Item 10.
During the interim period between the death or disability and the eventual transfer, the Cool Binz business must continue to operate in full compliance with the existing franchise agreement. This ensures that the business maintains its standards and obligations even during the transition.
Furthermore, in the event of the Designated General Manager's death or disability, the document specifies that another owner, spouse, child, or parent may temporarily operate the Cool Binz business, provided they meet certain qualifications. These qualifications include being otherwise qualified as a transferee, personally managing the business full-time, receiving franchisor approval, completing the training program, and signing an assignment and assumption of the Franchise Agreement. If no qualified person is available, Cool Binz has the right to appoint a representative or another franchisee to operate the business.