What specific information about the owners of the franchisee entity must be submitted to Cool Binz?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
Before attending the Initial Training and/or upon any change to the legal entity ownership, you must submit to us a corporate resolution, or similar action, which states the name of the corporation or LLC, the legal names of all of the partners or shareholders, the percentage of ownership that each member controls, their place of residence and their agreement to be bound by the terms of the Franchise Agreement. In the case of multiple owners, you must submit a dispute resolution procedure acceptable to us in our sole discretion that states what you will do in the event that there is a conflict between any owners of the franchisee entity. In addition, at all times, the owners who have executed the Franchise Agreement must control 67% of the franchisee entity. The remaining owners must sign a written confidentiality and non-compete agreement in the form we prescribe.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, before commencing operations or upon any change to the legal entity ownership, franchisees must submit specific information about the owners to Cool Binz. This includes a corporate resolution (or similar action) stating the name of the corporation or LLC, the legal names of all partners or shareholders, the percentage of ownership each member controls, their place of residence, and their agreement to be bound by the terms of the Franchise Agreement.
For franchisees with multiple owners, Cool Binz requires a dispute resolution procedure acceptable to them, outlining how conflicts between owners will be handled. Additionally, the owners who executed the Franchise Agreement must control at least 67% of the franchisee entity. Any remaining owners must sign a written confidentiality and non-compete agreement in the form prescribed by Cool Binz.
This requirement ensures that Cool Binz has a clear understanding of the ownership structure of each franchise and that all owners are committed to the terms of the Franchise Agreement. The dispute resolution procedure and the control threshold help to mitigate potential conflicts among owners that could negatively impact the operation of the Cool Binz business. The confidentiality and non-compete agreements protect Cool Binz's interests by preventing non-controlling owners from disclosing confidential information or competing with the franchise system.