Are there any financial thresholds that trigger the personal guaranty requirement in the Cool Binz franchise agreement?

According to the 2025 Cool Binz Franchise Disclosure Document, if the franchisee is a legal entity such as a partnership, LLC, or corporation, all general partners, members, and direct/indirect equity holders must execute an agreement personally guaranteeing the legal entity's obligations to Cool Binz. This personal guarantee covers the full payment and performance of the legal entity's duties under the Franchise Agreement.

This means that as a Cool Binz franchisee, if you operate your franchise through a business entity, you and all other owners with equity interest will be personally liable for the financial and operational obligations of the franchise. This includes, but is not limited to, the payment of fees and adherence to the terms outlined in the franchise agreement. The personal guaranty is required upon the legal entity's execution of the Franchise Agreement.

The personal guaranty must be in the form attached as Exhibit D to the Franchise Agreement or in another form that Cool Binz may prescribe from time to time. This ensures that Cool Binz has recourse to the personal assets of the owners should the business entity fail to meet its obligations. There are no financial thresholds mentioned that would trigger this requirement; it is a standard condition for franchisees operating under a legal entity structure.