Is there any additional compensation required beyond the initial agreement for executing and delivering additional documentation requested by 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.
At the start of their employment, you must require, as consideration for employment, each of your Managing Owner, Designated Managers, sales and/or account management employees to sign non-disclosure and confidentiality agreements that we have specified or approved. Such agreements will prohibit disclosure, by the employee to any other person or legal entity, of any trade secrets, customer lists, or other information, knowledge, or know-how regarding the System or the operation of the COOL BINZ Business, which is deemed confidential and/or proprietary by us. Such employee non-disclosure and confidentiality agreements will, to the fullest extent permitted by applicable law, prevent employees from servicing or soliciting any of the customers of your Business, except in their capacities as employees of the COOL BINZ Business. We may require you to send us a copy of such agreements once fully signed.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, franchisees are required to submit certain documents, such as a corporate resolution or similar action, before attending initial training or upon any change to the legal entity ownership. This document must state 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. In cases with multiple owners, a dispute resolution procedure acceptable to Cool Binz must also be submitted, outlining how conflicts between owners will be resolved. The owners who executed the Franchise Agreement must control 67% of the franchisee entity, and the remaining owners must sign a written confidentiality and non-compete agreement in the form prescribed by Cool Binz.
Additionally, Cool Binz may require franchisees to send them a copy of the non-disclosure and confidentiality agreements signed by their Managing Owner, Designated Managers, sales, and/or account management employees. These agreements are required as consideration for employment and must prohibit the disclosure of trade secrets, customer lists, or other confidential information regarding the Cool Binz system or the operation of the Cool Binz business. The agreements should also prevent employees from servicing or soliciting customers of the franchisee's business, except in their capacity as employees of the Cool Binz business.
The FDD does not explicitly state whether there are additional fees associated with the execution and delivery of these documents beyond the initial franchise agreement. However, it is implied that franchisees are responsible for ensuring these documents are prepared and submitted in the required format. A prospective franchisee should clarify with Cool Binz whether any additional compensation is required for the review, processing, or approval of these documents.