What security is required by Cool Binz to obtain financing?

According to Cool Binz's 2025 Franchise Disclosure Document, the only security Cool Binz requires to obtain financing is a personal guaranty of the promissory note. This guaranty must be provided by the franchisee, all owners of the franchisee entity, and their respective spouses. This means that these individuals are personally responsible for the debt if the Cool Binz franchise fails to make payments.

Cool Binz may offer financing for a portion of the Initial Franchise Fee, Initial Equipment Package, and the Initial Promotional Package if the franchisee meets their qualifications. However, Cool Binz does not offer financing for the purchase of the truck. If a franchisee defaults, they may face termination or other loss of the franchise. Additionally, the franchisee must pay the entire amount due, including Cool Binz's attorneys' fees and court costs incurred in collecting the debt.

The franchisee must waive presentation for payment, demand, notice of non-payment, protest, and all other demands and notices required by law (statutory or otherwise). This waiver limits the franchisee's legal rights in the event of a default. The promissory note survives termination of the Franchise Agreement, meaning the franchisee remains liable for the debt even if the franchise is no longer operating. This is a significant risk for prospective franchisees, as they could be held personally liable for a substantial debt even after the franchise has failed.