Are there any limitations on the amount that BFG Holdco, Inc. will guarantee for Cool Binz's obligations?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
seek to recover those amounts from the affiliate; however, the Company does not hold specific recourse or collateral rights in connection with the guarantee.
15. Retirement Plans
The Company sponsors a 401(k) plan for substantially all employees. The plan provides for the Company to make a required matching contribution. The Company may also make additional discretionary contributions to the plan. Contributions to the plan totaled $181, $212 and $244 for the years ended December 31, 2024, 2023, and 2022 respectively.
GUARANTEE OF PERFORMANCE
For value received, BFG Holdco, Inc., a Delaware corporation (the "Guarantor"), located at 3310 West End Avenue, Suite 620, Nashville, TN 37203, absolutely and unconditionally guarantees to assume the duties and obligations of Chem-Dry, Inc., NHance, Inc., 1-800 Water Damage International, LLC, Hoodz International, LLC, Ductz International, LLC, Patch Boys International, LLC, Plumberz International, LLC, Packoutz International, LLC, Safer Home Services International, LLC, Cool Binz International, LLC, Redbox+ International, LLC and JunkCo+ International, LLC, under their franchise registrations in each state where the franchises are registered, and under its Franchise Agreement identified in their Franchise Disclosure Documents issued March 28, 2025 (individually, each, a "Franchisor"), and as the Franchise Agreements may be entered into with all such obligations of the Franchisor under its franchise registrations and the Franchise Agreement are satisfied or until the liability of Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever occurs first.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 62)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, BFG Holdco, Inc. provides a guarantee of performance for Cool Binz International, LLC's obligations. This guarantee, executed on March 21, 2025, ensures that BFG Holdco, Inc. will assume the duties and obligations of Cool Binz under its franchise registrations in each state where the franchises are registered and under its Franchise Agreement.
The guarantee remains in effect until all obligations of Cool Binz to its franchisees under the Franchise Agreement are satisfied or until the liability of Cool Binz to its franchisees has been completely discharged, whichever occurs first. The guarantee specifies that BFG Holdco, Inc. is not discharged from liability if a franchisee's claim against Cool Binz remains outstanding, and notice of acceptance is waived.
The guarantee does not explicitly state any monetary limitations on the amount that BFG Holdco, Inc. will guarantee. The guarantee is binding on BFG Holdco, Inc. and its successors and assigns, indicating a comprehensive commitment to fulfill Cool Binz's obligations to its franchisees without a stated cap on the guaranteed amount.