What tangible equipment does a Cool Binz franchisee agree to purchase from CBI?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
- **1.
EQUIPMENT PURCHASE.** Franchisee agrees to purchase from CBI and CBI agrees to sell to Franchisee the tangible equipment listed on the presented invoice ("Invoice") and, if applicable, pursuant to the payment terms set forth in a corresponding promissory note ("Promissory Note").
The equipment purchased under this Agreement shall be referred to as the "Equipment." To secure Franchisee's obligations to pay CBI for the Equipment, in the event CBI financed any portion of the purchase of the Equipment, and to dispose of the Equipment in accordance with the Franchise Agreement, Franchisee has granted to CBI the security interest in the Equipment set forth herein.
- **2.
SHIPMENT, TITLE & RISK OF LOSS.** CBI will arrange for shipment of the Equipment on the Invoice to Franchisee.
Risk of loss and title to the Equipment transfers to Franchisee upon delivery, subject to any security interest of CBI retained under this Agreement.
Franchisee acknowledges containers and/or decals may be scratched in the delivery process and that CBI and its agents shall use commercially best efforts in the delivery process.
Franchisee shall inspect each shipment promptly upon receipt and will be deemed to accept the Equipment as conforming to the Invoice unless any gross defects or deficiencies are noted to CBI within 24 hours after delivery.
Franchisee agrees, if no defects or deficiencies are reported within this time period, all sales are final.
- **3.
WARRANTIES.** All Equipment is warranted by its manufacturer only.
CBI warrants only that the Equipment is delivered with good and merchantable title, free and clear of all liens, claims and encumbrances, and that the Equipment conforms to the requirements set by CBI under the Franchise Agreement.
CBI offers no other warranty and assigns to Franchisee any and all rights to any express or implied warranty of each Equipment manufacturer.
THERE ARE NO EXPRESS OR IMPLIED WARRANTIES ON THE EQUIPMENT OFFERED, GIVEN OR PROVIDED BY CBI INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.
- **4.
EQUIPMENT USAGE.** Franchisee agrees not to use the Equipment in any business or manner other than in the conduct of the Business pursuant to the Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, a franchisee agrees to purchase tangible equipment from CBI as listed on a presented invoice. This equipment is essential for operating the Cool Binz business. If CBI finances any portion of the equipment purchase, the franchisee grants CBI a security interest in the equipment to secure the payment obligation. This means Cool Binz retains a legal claim on the equipment until it is fully paid for.
Cool Binz arranges for the shipment of the equipment to the franchisee. The risk of loss and title transfer to the franchisee upon delivery, although CBI retains a security interest if financing is involved. The franchisee is expected to inspect the shipment promptly and report any gross defects or deficiencies to CBI within 24 hours of delivery. Failure to report within this timeframe means the franchisee accepts the equipment, and all sales are final.
The equipment itself is warranted by its manufacturer. Cool Binz warrants that it delivers the equipment with good title, free of liens, and that the equipment meets the requirements set by Cool Binz under the Franchise Agreement. However, Cool Binz offers no other warranties, assigning to the franchisee any rights to the manufacturer's warranties. The franchisee must use the equipment only for conducting the Cool Binz business as outlined in the Franchise Agreement.