For Cool Binz, what specific business purpose must the proceeds of the Promissory Note be used for?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The Undersigned hereby confirms that the proceeds of this Promissory Note will be used for the business purpose of starting a COOL BINZ franchised business.
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- It is the parties' intent that the provisions of this Promissory Note be judicially enforced to the fullest extent permissible under applicable law. Accordingly, the parties agree that any reduction in scope or modification of any part of the provisions contained here in this Promissory Note shall not render any other part unenforceable.
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- Holder's failure to enforce any rights granted to it under this Promissory Note will not constitute a waiver of such rights.
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- This Promissory Note is binding upon and will insure to the benefit of the parties and their successors, heirs, and assigns.
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- The persons executing this Note on behalf of the Undersigned acknowledge their authority to do so.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, the proceeds from the Promissory Note must be used specifically for starting a Cool Binz franchised business. This is a legally binding agreement, as the document states that it is the intent of all parties involved that the provisions of the Promissory Note be judicially enforced to the fullest extent permissible under applicable law.
This means that a franchisee cannot use the funds from the Promissory Note for any other purpose other than establishing their Cool Binz franchise. This restriction ensures that the funds are used as intended, to set up and operate the franchise according to the Cool Binz system.
Furthermore, the document emphasizes that failure to enforce any rights granted under the Promissory Note does not constitute a waiver of such rights, and the note is binding upon all parties, their successors, heirs, and assigns. This reinforces the importance and legal weight of the agreement, ensuring that all parties are held accountable for their obligations.